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KII5044

CUSTOMER SERVICE IN HOSPITALITY


CUSTOMER SERVICE IN HOSPITLAITY

National Competency
SITXCCS007 Enhance customer service experiences
SITXCCS008 Develop and manage quality customer service
practices
Unit summary
• This unit describes the performance outcomes, skills and
knowledge required to provide professional and personalised
customer service experiences. It requires the ability to
determine and meet customer preferences, develop customer
relationships, respond to difficult service situations, and take
responsibility for resolving complaints.
• This unit also describes the performance outcomes, skills and
knowledge required to develop, monitor and adjust customer
service practices. It requires the ability to consult with
colleagues and customers, develop policies and procedures
for quality service provision, and manage the delivery of
customer service.
Objectives
▪ Provide a quality service experience.
▪ Proactively respond to difficult service situations.
▪ Resolve customer complaints.
▪ Develop customer relationships.
▪ Develop quality customer service practices
▪ Manage delivery of quality service.
▪ Monitor and adjust customer service.
Section 1 Enhance Customer
Service Experiences
Provide a quality service
experience

1.1 Determine and


confirm customer
preferences, needs
and expectations
Customer preferences, needs
and expectations
Preferences, needs and expectations may
relate to:
▪ For products:
o price
o specifications
o warrantee/guarantee
o delivery
o returns policy.
Customer preferences, needs
and expectations
Preferences, needs and expectations may
relate to:
▪ For services:
o price
o timescale
o quality
o value
o expertise.
Provide a quality service
experience

1.2 Advise customers


about appropriate
products and
services to meet their
needs
Advising on products and
services
▪ The range of available
options
▪ The specifications of
products
▪ What is included in service
packages
▪ Optional extras
▪ Product compatibility
▪ What represents good
value for money.
Product specifications
For example, specifications for a tour guide
experience may include:
▪ The type of experience on offer
▪ The length of the tour
▪ The content of the tour guide
▪ What is included
▪ Eligibility requirements for
the tour.
Service packages
For example:
▪ Duration of service
▪ Number of staff provided
▪ Venue
▪ Customer requirements
▪ How many people the
service is for
▪ What products are
included in the service,
e.g., catering services
▪ Optional extras/add-ons.
Provide a quality service
experience

1.3 Anticipate
customer
preferences, needs
and expectations
throughout the
service experience
Anticipating preferences, needs
and expectations
Consider:
▪ Compatible/related products
▪ Upgraded products
▪ Deals/offers
▪ Budget.
Provide a quality service
experience

1.4 Promptly provide


products and
services with
professional and
personalised service
to meet individual
preferences
Professional service
▪ Attentiveness
▪ Patience
▪ Respect
▪ Courtesy
▪ Calmness
▪ Adaptability
▪ Helpfulness
▪ Knowledge.
Provide a quality service
experience

1.5 Offer extras and


add-ons and provide
tailored and
additional products
and services
Extras and add-ons
For products/services, add-ons or extras may
include:
▪ Extended warranties
▪ Additional destinations, tours or cruises
▪ Damage protection
▪ Delivery
▪ Etc.
Example B – Wedding caterer
Additional services include:
▪ Providing table centre
pieces
▪ A candy cart
▪ Extra serving staff
▪ Champagne for guests on
arrival at the venue
▪ Edible wedding favours.
Provide a quality service
experience

1.6 Check actioning


of special requests
before customer
delivery
Special requests
For example:
▪ Gift wrapping/messages
▪ Where to leave delivery,
e.g., with neighbours
▪ Adaptation to usual
goods, e.g., a customer
who orders a candy
package may request a
swap from one item to
another to cater to a nut
allergy, for example.
Verifying special requests
In order to check that special requests have been
actioned, it is necessary that you are able to
identify where special requests are recorded,
such as on order forms or on a customer profile
on a computer database.
Provide a quality service
experience

1.7 Liaise with team


members and
suppliers to ensure
efficient service
delivery
Liaise with team members
▪ Good communication
between team members
can reduce the likelihood of
mistakes being made or
delays occurring
▪ This may involve proper use
of written instructions
between team members
▪ Additionally, good verbal
communication can help a
team work together
efficiently.
Liaise with suppliers
Liaising with suppliers may involve:
▪ Placing orders online, over the phone or in
person
▪ Responding promptly to correspondence
▪ Chasing up suppliers
▪ Bringing incorrect orders
to the attention of
suppliers quickly
▪ Checking available
stock levels.
Provide a quality service
experience

1.8 Share customer


information with
team members to
ensure quality
service
Customer information may
include:
▪ Contact details
▪ Order details
▪ Special requests
▪ Payment
arrangements, e.g.,
already paid, to be
paid, instalment plan
▪ Any other necessary
information.
Sharing customer information
Customer information may be shared via:
▪ A customer database/
online system
▪ Written instructions on
order forms, etc.
▪ Verbal communication.
Proactively respond to difficult
service situations

2.1 Identify problems


with products and
services and take
immediate action to
address before
provision to
customer
Identifying problems with stock
Stock problems may include:
▪ Low stock supply
▪ Wrong stock delivered/shipping error
▪ Damaged stock
▪ Advertised promotions have come to an end.
Immediate action may include:
▪ Removing damaged products
from shelves
▪ Recording lost/damaged stock
according to organisational
policy and procedure
▪ Ordering stock replenishments
or bringing low stock to the
attention of the relevant
personnel
▪ Removing advertisements for
promotions that have finished.
Service problems may include:
▪ Absence of required
staff
▪ Unavailability of
venues/facilities
▪ Supplier delay
▪ Broken/malfunctionin
g equipment
▪ Other delays.
Service problems may be
identified by:
▪ Reviewing requirements
and special requests in
advance of service delivery
▪ Ensuring that all required
items have been received/
are in place
▪ Visiting facilities and venues
in advance of events
▪ Checking equipment and
systems before use.
Proactively respond to difficult
service situations

2.2 Anticipate delays


in product and
service provision and
regularly update
customer on
expected outcomes
Delays may be anticipated if:
▪ Deliveries from third
parties are delayed
▪ Equipment
malfunction
▪ Stock is damaged
▪ Staff absences have
occurred
▪ There has been a
miscommunication.
Updating customers
Contact methods may
include:
▪ Phone call
▪ Email
▪ SMS service
▪ Tracking systems, e.g.,
delivery tracking.
Proactively respond to difficult
service situations

2.3 Advise customers


of alternative
products and
services
Advising on alternatives
Alternatives may be required at any time during
the provision of products or services.
For example, this may be due to:
▪ Budget requirements
▪ Change of plans, i.e.,
number of attendants
to an event
▪ Dissatisfaction with
current product or service.
Listening to customers
Listening effectively will
include:
▪ Not interrupting the customer
▪ Assessing the customer’s body
language
▪ Listening to and interpreting
the customer’s tone
▪ Paraphrasing or repeating back
the key points to confirm
understanding
▪ Etc.
Proactively respond to difficult
service situations

2.4 Proactively
compensate for
service difficulty in
line with own level of
responsibility and
organisational policy
Options for compensation may
include:
➢ Reduced rates
➢ Providing some or all services free of charge
or at a reduced rate
➢ Discount vouchers for future services
➢ Inexpensive add-on products
➢ Small gifts
➢ Special attention
➢ Special customer service
delivery on future occasion.
Limits of compensation
There will be limits to what can be compensated
to a dissatisfied customer based on the value of
the transaction, the severity of the error,
organisational policy and procedure and the
responsibility level of the member of staff
handling the issue.
Proactively respond to difficult
service situations

2.5 Provide ongoing


internal feedback on
service issues and
suggest
improvements
Internal feedback
▪ Formal:
o surveys
o interviews
o structured questioning
▪ Informal:
o observation
o casual discussion.
Service issues may include:
▪ Delays/lateness of delivery
▪ Under-delivering on
expectations
▪ Rudeness/lack of
professionalism
▪ Lack of cohesion in resolving issues
▪ Lack of contact from service staff/being
‘screened’
▪ Pushiness from staff, e.g., over-zealousness in
promoting offers.
Resolving issues
Resolving issues may involve training or re-
training staff and, where customer service issues
persist, disciplinary procedure may be
implemented, e.g., putting a member of staff
under review.
Resolve customer complaints

3.1 Use questioning


techniques to
establish and agree
on nature, possible
cause, and details of
the complaint
Questioning techniques
▪ Funnel questions
▪ Clarifying questions
▪ Probing questions.
Resolve customer complaints

3.2 Assess impact on


customer
Impact assessment
▪ Inconvenience – an issue has
caused a customer to waste
time and possibly experience
some frustration
▪ Distress and/or suffering –
an issue has caused someone
mental, emotional or physical
distress
▪ Damaged reputation – a
customer has damaged their
own reputation or that of their
own business due to issues
caused by your company.
In order to assess impact, it must
be determined whether:
▪ The customer had reasonable
expectations that were not met
▪ The customer’s time was wasted
▪ The customer experienced injury or
harm
▪ The reputation of the customer or the
customer’s business was damaged
▪ The customer experienced unusual
distress due to issues originating in the
company.
Resolve customer complaints

3.3 Take
responsibility for
resolving complaints
in a professional
manner and using
communication
techniques to assist
in their management
Resolving complaints
Complaints may be resolved by:
▪ Determining the nature, cause and details of
a complaint
▪ Offering compensation in accordance with
organisational policy and procedure and own
level of responsibility
▪ Initiating escalation
procedure for complaints
that cannot be resolved
personally.
Communication techniques
▪ Active listening, i.e., eye contact, attentive
body language, reflecting, summarising, etc.
▪ Apologetic tone
▪ Calmness and patience
▪ Acknowledge the customer and the issue
▪ Maintaining a helpful and
understanding attitude
▪ Describe what you are going to do
to fix the problem and confirm that
the customer agrees with this resolution.
Resolve customer complaints

3.4 Determine
options to resolve
complaints and
promptly analyse
and decide on
optimal solutions,
taking organisational
constraints into
account
Determine options
Options for resolving complaints
include:
▪ Offering refunds or replacements for
damaged or malfunctioning goods
▪ Finding alternative options for service
issues or underperformance
▪ Offering compensation in situations
where goods/services cannot be fixed
▪ Escalating complaints to more senior
personnel where they cannot be
resolved by on-the-ground staff
members.
Considering organisational
constraints
This may require that you take into account:
▪ Value of the customer’s purchase(s) and the
cost of possible options for resolving their
complaint
▪ Whether a customer is a repeat customer
▪ The attitude of the customer
▪ Validity of the customer’s complaint
▪ Impact on the customer
▪ Impact on the company’s reputation if the
complaint is escalated or advertised.
Resolve customer complaints

3.5 Act swiftly to


resolve complaints
and prevent
escalation, in
consultation with
customer and to
customer satisfaction
Swift resolution
Acting swiftly means:
▪ Taking action the
same day
▪ Where others are
involved, following
up quickly if no
response received
▪ Informing the
customer of what
action has been
taken.
Consulting with the customer
Contact may be made:
▪ To confirm receipt of a written complaint
▪ To offer standard compensations
▪ To explore which alternative compensations
would be acceptable to the customer where
standard compensations are considered
insufficient
▪ To inform them when action
is taken
▪ To reassure that action is
being taken.
Resolve customer complaints

3.6 Turn complaints


into opportunities to
demonstrate high
quality customer
service
Complaints as opportunity
Customer complaints
should be seen as an
opportunity to demonstrate
high quality customer
service that can regain a
disappointed customer’s
trust and make sure that the
company maintains a
positive reputation, even
when mistakes have been
made.
Internal feedback
Feedback should be:
▪ Timely
▪ Specific
▪ Objective
▪ Constructive.
Organisational policy and
procedure
This may cover:
▪ When feedback is given
▪ How often feedback is
given, e.g., regular
performance reviews,
incident reviews, etc.
▪ How feedback is given
▪ Required records of
feedback
▪ Appropriate follow-up.
Required follow-up
For example:
▪ Training or re-
training
▪ Disciplinary
procedure
▪ Follow-up
performance reviews
at a later date.
Resolve customer complaints

3.8 Review and


evaluate complaints
and solutions to
enhance response
to future issues
Review and evaluate
▪ Number of complaints
▪ Frequency of types of complaint
▪ Complaint response time
▪ Average time taken to resolve a
complaint
▪ Average cost of resolution
▪ Average call length
▪ Percentage of resolved
complaints
▪ Percentage of complaints
handled by frontline staff.
Section 2 Develop and Manage
Quality Customer Service
Practices
Develop customer relationships

4.1 Promote repeat


business by offering
promotional services
according to
individual
empowerment and
organisational policy
Promotional services
▪ Customer loyalty schemes
▪ Sales/offers
▪ Free shipping
▪ Offering product upgrades/ repairs
▪ Memberships with increased benefits
▪ Product/service ‘bundles’
▪ Free trials
▪ Discount on product
trade-in.
Individual empowerment and
organisational policy
You may need to consider whether:
▪ Offers can be used in conjunction with other
offers
▪ Fine print of coupons/vouchers apply
▪ Customers are eligible for promotions
▪ Individual empowerment and limitations apply
▪ Policy and procedure for
promotional services
applies.
Develop customer relationships

4.2 Maintain
customer profiles to
enhance service
delivery
Customer profiles
▪ Customer name
▪ Contact details and preferences
▪ Age/birthday
▪ Location
▪ Gender
▪ Online behaviour
▪ Purchase channels
▪ Order history and order information
▪ Product preferences/interest
▪ Household/lifestyle
▪ Likes and dislikes.
Maintaining customer profiles
Information may be added or updated on a
customer profile when:
▪ A customer places an order for the
first time
▪ A customer places a new order
▪ A customer subscribes to a service
▪ A customer has had a discussion
regarding their goods/services with
a staff member that requires
further action or review.
Develop customer relationships

4.3 Provide
personalised service
to customers in a
professional manner
that builds repeat
business
Personalised service
▪ Avoiding ‘scripted’ conversations
▪ Remembering details about
customers
▪ Acknowledging customers
▪ Engaging with customers
▪ Listening to a customer’s needs
▪ Responding to a customer’s tone of voice or
body language
▪ Approachable and sincere body language
▪ Flexibility.
Develop customer relationships

4.4 Provide tailored


products and
services based on
customer profile
Targeted marketing
For example:
▪ Senior discount offers being
advertised only to over-65s
▪ Beauty services being
promoted to women
▪ Childcare services being
promoted to parents
▪ Wine tasting events for
customers who have
purchased wines.
Other uses of customer data
▪ Creating a more personalised shopping
experience.
▪ Customising promotions and special offers.
▪ To identify gaps in the products/services you
offer and to offer products/services that fill these
gaps
▪ To improve customer service, e.g., addressing a
customer by name
▪ To allow customers to
review their own
spending, habits, etc.
Develop quality customer
service practices

5.1 Obtain
information on
customer needs,
expectations and
satisfaction levels
using both formal
and informal
research
Customer service and sales
The time and effort spent by businesses
developing their customer service approach can
have positive implications on sales levels.

For those who are impressed with the treatment


they have received, they might be inclined to
recommend your products and services to
others.
Analysis of competitive
environment
You might decide to establish the following
about competitors:
▪ What have they done to improve their service?
▪ What share of the market do they hold?
▪ Is there anything your competitors are doing
that could be applied to your organisation to
improve customer satisfaction?
Keeping track of competitors
Actions to keep on track of competitors:
▪ Watch their social network activity
▪ Speak to your customers
▪ Visit your competitors directly
▪ Hire your competition.
Customer service surveys
Examples of surveys that you could use
include:
▪ Personal interviews - questioning takes place
face-to-face
▪ Postal surveys – handing customers surveys
to complete or sending them directly to them
▪ Telephone interviews – speaking to
customers over the phone
▪ Internet surveys – sending the customer an
online survey to complete.
Customer focus groups
A focus group is a method of qualitative
research whereby participants are questioned
about their perceptions, expectations, or needs
regarding a particular topic, product or service.
Conducting a focus group enables respondents
to expand on each other’s answers, potentially
providing more detail than individual interviews.
Seeking feedback from service
delivery colleagues
Meetings could take place where feedback is
passed on to employees about how they could
improve their customer service approach or
individuals could ask their colleagues for
feedback when they feel it is necessary.

Meetings can also help to identify customer


complaints.
Customer needs and
expectations
Common customer needs and expectations
include:
▪ Friendliness
▪ Empathy
▪ Fairness
▪ Clear instructions and information
▪ Options and alternatives.
Develop quality customer
service practices

5.2 Provide
opportunities for
customers and staff
to give feedback on
products and
services
Importance of gaining feedback
Feedback is important for the following reasons:
▪ It can enable you to improve on products or
services
▪ It can help with the developing a product
▪ It allows you to measure customer satisfaction
▪ It enables you to improve experiences in the
future, making it easier to retain customers
▪ It can provide you with useful business data.
Gaining feedback from staff
Employees on the front line will have detailed
knowledge about the goods or services being
provided by your organisation, and are likely to
have their own opinions about which goods and
services are of good quality and which are not.

A useful opportunity to discuss service and


product quality among staff members is at
meetings.
Suggesting product
improvements
Improving products can be based on:
▪ Customers involved in complaints or disputes
▪ Information provided by suppliers
▪ Advice and suggestions from staff, supervisors
and managers.
Develop quality customer
service practices

5.3 Review changes


in internal and
external
environments and
integrate findings
into planning for
quality service
Management changes and
organisational restructures
Changes can occur for the following reasons:
▪ If there is a vast growth in sales, new
management structures may be required with
new divisions or departments
▪ If a service suddenly becomes very popular
▪ The merging or amalgamation of two firms
▪ The promotion or downgrading in role of
individuals.
Recruitment practices
You may consider the following when
assessing potential employees:
▪ Does the person have a positive attitude?
▪ Can you identify empathy in the voice of the
person?
▪ Have they maintained a job role in the past for
a reasonable length of time?
▪ Can the candidate demonstrate high attention
to detail?
Trends in customer service
preferences
It is vital to keep on top of customer preferences.
This may be in relation to both their expectations
from a product or service or their needs when
communicating with employees.

Changes to preferences may include for


example the type of feedback that people
expect to receive from queries or complaints.
Economic climate
Financial information that you may need to
monitor could include:
▪ Budgets
▪ Ratio analysis
▪ Budget forecasts
▪ Cash flow statements
▪ Profit and loss statement
▪ Balance sheets
▪ Investment and liability reports.
Introduction of new
technologies or equipment
Consider the following before introducing new
technologies:
▪ Is the new technology compatible with
existing technologies?
▪ How will the workforce react to the changes?
▪ Will there be any difficulties caused in the
changeover from old to new technologies?
▪ What are the short term and long term
financial implications of the technologies?
Develop quality customer
service practices

5.4 Provide
opportunities for staff
to participate in
development of
customer service
practices
Meetings
You could organise meetings at regular intervals
to both seek and provide feedback to
employees about customer service.

Any customer complaints in relation to the


service provided could also be brought forward.
Including staff members
Situations where staff members can be
included in the development of practices:
▪ The development of staff training
▪ Discussion about customer services in
meetings
▪ Speaking individually to staff members about
how to improve customer services
▪ Asking for feedback when creating new
policies and procedures.
Develop quality customer
service practices

5.5 Develop policies


and procedures for
quality service
provision
Developing policies and
procedures
Consider the following when developing
policies and procedures:
▪ Current workplace policies and procedures
▪ Feedback from staff members
▪ Feedback from customers
▪ Policies and procedures implemented by
competitors
▪ Regulatory requirements related to your
industry.
Manage delivery of quality
service

6.1 Communicate
policies, procedures
and expectations to
staff
6.2 Make policies
readily available to
customers and staff
Communicating to staff
The most significant stakeholder to inform the
changes to is staff members.
Methods of communicating to staff members
include:
▪ Speaking to employees individually
▪ In group meetings or briefings
▪ Through e-mail
▪ In letters or notes.
Making policies available
When documenting policies, procedures and
expectations, remember the following:
▪ Make sure that they are understood by those
using them
▪ Ensure that any writing, tables or diagrams are
legible
▪ Confirm that there are no mistakes in the
documents
▪ Encourage staff and customers to suggest any
changes to the policies and procedures in order to
heighten customer satisfaction.
Manage delivery of quality
service

6.3 Monitor customer


service in the
workplace to ensure
standards are met
Reviewing written
correspondence
Any forms of communication to customers that
involve writing could be reviewed. This might
include letters, e-mails, social media
communication or live chat records.

The data should be assessed to establish if


customer service is to the required standard.
Monitoring phone calls
Aspects of phone calls to monitor include:
▪ The greeting, which should be consistent
across the organisation to increase
professionalism
▪ Providing an identification
▪ Clarifying what it is the customer wants
▪ Providing a competent response
▪ Detailing how the query or request will be
responded to
▪ A polite closing of the call.
Hiring a ‘quality inspector’
Benefits of having a quality inspector include:
▪ They will have a detailed knowledge of
customer service skills
▪ They can prevent unsatisfactory customer
service going unnoticed
▪ It can alleviate the issue of employees not
bringing forward issues
▪ Inspectors may notice common problems and
could discuss them at team meetings or
organise appropriate training.
Looking at complaints
Assessing the numbers and types of complaints
that your company has received can act as a
useful point of information for customer service
levels.

Be careful not to automatically view an increase


in complaints as a sign that customer service
levels have dropped though.
Manage delivery of quality
service

6.4 Initiate staff


training to enhance
customer service
Meetings
You could organise meetings at regular intervals
to both seek and provide feedback to
employees about customer service.

Any customer complaints in relation to the


service provided could also be brought forward.
Mentoring
Mentoring is a method that can be used within
businesses to support professional
development. This usually takes place between
two individuals.

The ‘mentor’ is normally an experienced


individual who has a lot of knowledge about the
industry, while the ‘mentee’ is less experienced
and requires support.
Internal training
Internal training involves staff members taking
part in activities and sessions in groups.

Practicing active listening involves the


following:
▪ Clarification
▪ Paraphrasing
▪ Reflecting feelings
▪ Summarizing.
Manage delivery of quality
service
6.5 Take
responsibility for
service outcomes
and dispute
resolution
6.6 Act as a positive
role model for
professional
standards expected
of service industry
personnel
Identifying responsibilities
Examples of responsibilities when resolving
disputes:
▪ Passing information about complaints on to
other members of staff
▪ Reporting complaints to senior management
▪ Actions for providing refunds
▪ Providing customers with alternate products
or services when their preferred choice is not
available.
Setting a positive example
Acting as a positive role important because:
▪ It sets a standard for other works to follow
▪ Staff members often look to managers for
inspiration
▪ It can help to build respect between staff lower
down the hierarchy and managers seeing as the
managers are modelling the behaviour they are
asking of others
▪ Customers can often take the behaviour of a
manager or senior member of staff as a
representation of the entire organisation.
Monitor and adjust customer
service

7.1 Seek ongoing


feedback from staff
and customers to
improve
performance
Seeking information from staff
You could seek information on the following:
▪ The length of time it takes dealing with
customers:
▪ during standard interaction
▪ after an inquiry is made
▪ following a complaint
▪ preparing customer environment
▪ Customer feedback they have received
▪ Job satisfaction.
Feedback from customers
You may want to find out the following:
▪ How would they rate different aspects of
customer service?
▪ Do they feel that any complaints were handled
appropriately?
▪ Were they satisfied with the response to any
queries?
▪ Have they been informed about pricing and
service guarantees?
Monitor and adjust customer
service

7.2 Assess
effectiveness of
customer service
practices
Assessing effectiveness of
practices
Effectiveness could be determined based on:
▪ Responses from staff
▪ Findings from quality supervisor
▪ Data from customer surveys
▪ Monitoring phone calls
▪ Reviewing written correspondence with
customers
▪ Looking at sales figures
▪ Viewing customer complaints
▪ Benchmarking.
Monitor and adjust customer
service

7.3 Identify systemic


customer service
problems and adjust
policies and
procedures to
improve service
quality
Systemic customer service
problems
Systemic errors may involve:
▪ Faults with the website of company, such as:
o users not being able to log in
o difficulties with ordering and/or booking
o issues with customers entering data, such
as their address
o problems with cancellations
▪ Items being delivered to the wrong address
▪ Loyalty programs not being updated.
Monitor and adjust customer
service

7.4 Develop,
document and
communicate new
approaches to
customer service to
staff involved in
service delivery
Developing new approaches
Based on all the feedback you have received in
relation to customer service delivery following
the implementation of new or revised policies
and procedures, you may find it is necessary to
develop new approaches.
Communicating new
approaches to staff
You should let staff know about the following:
▪ The details of new approaches
▪ Why there has been a need for alteration
▪ Data received from customer and staff
feedback
▪ How any changes will impact on their role
▪ What training they will require to gain the skills
needed to deliver new approaches.
Summary and Feedback
▪ Did we meet our objectives?
▪ How did you find this session?
▪ Any questions?

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