Text Message Marketing and Personalization—Alex Levin, CEO, Regal.io


Have you been wondering how in the world you can keep a personal touch with your customers as digital marketing continues to increase its impact?  Or how to use text message marketing to personalize messages to your customers? 

Our guest today is Alex Levin, who shares with us some best practices and strategies for keeping a personal touch in business all the while using text messaging and other digital marketing strategies.

TODAY’S WIN-WIN:

You can keep a personal touch with your customers without digital marketing.

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  • Connect with our guest on social:
    • https://www.linkedin.com/company/regal-io/
    • https://x.com/regal_io

ABOUT OUR GUEST:

Alex Levin is Co-Founder and CEO of Regal.io. He leads the GTM teams. Prior to Regal.io, Alex was a product manager at Personal and Thomson Reuters, and then joined Handy (acquired by ANGI in 2018) as an early employee. At Handy and then ANGI Alex led growth and marketing. Alex grew up in New York and received his BA from Harvard. 

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If you are interested in being a guest on our podcast, please complete this request form or email podcast@bigskyfranchise.com and a team member will be in touch.

TRANSCRIPTION:

Dr. Tom DuFore, Big Sky Franchise Team (00:01):

Welcome to the Multiply Your Success podcast, where each week we help growth-minded entrepreneurs and franchise leaders take the next step in their expansion journey. I’m your host, Tom DuFore, CEO of Big Sky Franchise Team. And to open today, have you been wondering how in the world you can keep a personal touch with your customers as digital marketing continues to increase its impact in the marketplace? Or maybe how you use text message marketing to create personalized messages to your customers or potential customers to keep and maintain that personal touch?

Dr. Tom DuFore, Big Sky Franchise Team (00:39):

Well, our guest today is Alex Levin, and he shares with us some best practices and strategies for keeping that personal touch in business, all the while using text messaging and other digital marketing strategies. Now, Alex is the co-founder and CEO of Regal.io. He leads the go-to-market teams. Prior to Regal.io, Alex was a product manager at Personal and Thomson Reuters, and he then joined Handy acquired by Angi in 2018. As an early employee at Handy, and then Angi, which is better known I should say, as Angie’s List, Alex led growth in marketing. Alex is originally from New York and he received his bachelor’s degree from Harvard University. You’re going to love this interview, so let’s go ahead and jump right into it.

Alex Levin, Regal.io (01:27):

I’m Alex Levin, co-founder and CEO at Regal.io.

Dr. Tom DuFore, Big Sky Franchise Team (01:31):

Wonderful. Well, thank you so much for being here. And one of the things I’d like to just get things started with is about how brands and businesses can start having conversations with their customers. Why should a business leader look to do that?

Alex Levin, Regal.io (01:46):

Yeah, so take it back, for a long time I ran marketing and growth teams at B2C businesses, and I think as retail moved online first there was this idea that if you’re going to be online, you should digitize everything. And you never want to talk to your customer because contact centers or customer service or a call center. And why not just make everything self-serve? Customer will like it more. It’ll be cheaper, good for everyone. And I think if you’re selling a commodity, if you’re selling relatively simple products, that’s fine. I don’t think there’s anything problematic with that. But I ended up in the home services industry working at Angie’s List, and we kind of tried making everything digital and we found actually as a fully digital experience was converting worse than traditional paper and pencil providers. So people who came and looked for a service on Angi would convert it X, but if they went and talked to their local mainstream provider, they converted it 2 X.

Alex Levin, Regal.io (02:39):

And we go, we thought we were fancy technology people like how come we can’t make the technology work as well as the offline? And we threw everything against the wall. It wasn’t like we did this for a minute, literally for years we tried to make it better. And I think at the core of it, there’s a challenge, which is that some things, some consumer services and products are just a little more considered, a little more difficult. They’re emotional, they’re more expensive. It takes longer to make a decision. There might be multiple stakeholders involved in the decision. And a self-serve flow, while in theory you could fill it out, may not give the person enough trust, enough understanding in order to convert. Especially if the majority of the time they’re looking at on the cell phone, not even they have a desktop where they’re looking at this whole thing, they’re in this tiny little screen and they’re trying to decide, am I going to do a kitchen remodel? That’s a hard one.

Alex Levin, Regal.io (03:25):

So we started building a very big contact center, engaging with customers, and I think for a long time I thought I’d failed. It was sort of like I feel like I failed as a product market. I failed as a technologist because I have to use conversations. And over time talking to more people in considered industries, whether it’s financial services, healthcare, education, other local services businesses, I realized I didn’t fail. A critical part of serving a customer in these more considered products and services is a personal touch. And even if you go online, you still need that personal touch. And it’s interesting, for a long time, I believe that customers didn’t want to talk with us, and then I started surveying customers. And they said, “No, it’s not that I don’t want to talk to you.” Like 65, 70% said, “Oh, I want to talk to you on the phone, but I want to do it on my terms.”

Alex Levin, Regal.io (04:12):

What that means to them is don’t spam me five times at dinnertime on a Friday. Right? That’s bad. I don’t want to work with that brand. But if I’m on your site and I’m trying to refinance my student loan and I’m getting stuck, and you can in that minute start a conversation with me, I’m going to go, you are the coolest brand ever. How did you figure that out and how did you help me so well? So I think the takeaway is there’s two different playbooks. There’s the retail playbook online and high consideration. In high consideration, don’t be ashamed, don’t be afraid to actually talk with your customer. And remember, the customer doesn’t want to talk to you when it’s good for you. So too many businesses go, oh, I have five minutes now I’m going to call all my customers. Wow, no. Think about when is the right time for the customer, right?

Alex Levin, Regal.io (04:56):

They’re struggling on your site, they just clicked on your email, they just got off work. What channel do they like? What kinds of things matter most to them? If there’s somebody trying to buy an SUV, don’t talk to them about a sedan. So I think small businesses inherently are very good at this. They remember customers, they know they have a dog, they know they have kids, they know things. They know how to pitch them, they know how to sell them. As the small businesses become medium or big businesses, there’s an unfortunate thing that happens where in order to scale, they start treating everybody the same and they stop doing as much personal touch. I guess I’m here to say, one, keep the personal touch, but more importantly, figure out how you are going to build systems such that you can keep treating hundreds if not millions of customers like one in a million, instead of treating them all the same.

Dr. Tom DuFore, Big Sky Franchise Team (05:45):

Wonderful. That is a brilliant piece of information you shared there. It got me thinking about incorporating these cross-channel marketing efforts or communication. You mentioned maybe someone, maybe they’re interested in just scrolling on your website or it’s email or it’s text message or it’s a phone call or it’s in person or what have you. So I’d love for you to just talk about how you’ve seen the cross channel outreach and how that fares.

Alex Levin, Regal.io (06:09):

Yeah, I mean, again, I’ll start with the example. My wife’s friend that they grew up together is a life insurance agent in a small town. She does very well, everyone for a long time was a contact in her phone. She knew all the people in town, she texts them, she called them, they’re friends, they saw each other in supermarket. That, how do you recreate that experience, but at scale? That’s the goal. So the goal is not stop talking to your customer, treat them all the same. No, no, no. That’s the unfortunate side effect of bad tooling, bad software, bad hire. Really the goal should be treat everyone the same.

Alex Levin, Regal.io (06:43):

So how do you still, let’s say you’re a national moving company, and your question should be, how do I make each person feel like I know a lot about them even though they came in online and I maybe have never met them, and how do I make it feel to them like whenever they talk to us, everything they’ve told us in the past, we still understand and are using that for context and that I reach out in the channel that’s most important to them with messaging the matters to them. And it’s difficult.

Alex Levin, Regal.io (07:07):

And honestly, when I was at Angi, it was impossible. And we actually went to our contacts and our software provider and asked them to build us some of these features, and they told us to pound sand. They said, “Voice is going away, outbound is going away. You’re wrong, Alex.” And that’s where we started Regal. So Regal specifically works with these organizations that are larger to do that. If you’re a smaller business, I’d recommend tools like a Hatch app or podium. Those are sort of good tools for smaller businesses to start doing some of this engagement across chat, SMS, email, phone with a little bit of personalization. For larger businesses, you’re going to outgrow those. Honestly, that’s where Regal starts working. So we work with AAA in insurance or Angie’s List Home Services or a SoFi in banking or a Roman in healthcare, these scale businesses that really care deeply about their customers and members and want to figure out how, to your point, use multiple channels and keep that message personalized.

Dr. Tom DuFore, Big Sky Franchise Team (08:06):

Excellent. Well just a shout-out for any of our listeners that end up tuning into this. For some of our large franchisor clients or large brands that are tuning in your organization, sounds like it’s got some great options for them to consider.

Alex Levin, Regal.io (08:19):

Yeah, the line for me is if you have under 10 agents or representatives is in your call center, stick with simple online VOIP solutions, whether it’s Dialpad or Aircall, simple tools like Hatch and Podium, that’s for you. If you’re going and you have more than 10 agents in your internal contact center doing this stuff, that’s where Regal starts really getting powerful.

Dr. Tom DuFore, Big Sky Franchise Team (08:43):

Well, Alex, one of the reasons I was interested in having you on is your understanding of text message marketing and communication between prospective customers, maybe current customers and how all of that works. So I’d love for you just to talk about that maybe from a broad perspective and then let’s get into a few details on it.

Alex Levin, Regal.io (09:02):

You should be using SMS to engage customers. Customers think of SMS as something that’s more personal. It’s closer to a friend than a business. They read it at a much higher rate than they answer calls. It’s something that can be used to present more information easily to a customer. So if I’m on the phone with a customer and I say, hey, schedule something, it’s a back and forth conversation for five minutes, but I can just send them a text message with a link to a scheduling calendar and they can just do it themselves. So there’s a lot more powerful tools in SMS than there are in a conversation. So first message is just use it and then no matter what, just start using it. Second, I’d say there are rules in the United States. You have to be very careful. This is part of what’s kept people away from it.

Alex Levin, Regal.io (09:43):

The basic rule is you’ve got to have somebody give you their phone number and give you permission. Express written consent is the legal term, but permission to text them. So make sure that at some point in your flow, you’re getting the phone number, cell phone number, and you have a little box that says, “Hey, I give you permission to call and text me.” This is not legal advice. There are specific words you have to use that are actually on our blog if you want to go look, but you have to get permission. Do not start texting people when you don’t have permission. You’re just going to piss them off and legally you’ll ultimately get in trouble. And then the last piece is starting to think through how you’re engaging with folks.

Alex Levin, Regal.io (10:19):

So again, the simplest, most basic is just take all the numbers and blast them all with the same message. Don’t recommend that. The most advanced is to start thinking about SMS like Goosebumps, Chooser Your Adventure. Depending on what the customer does, the SMS they get should be different. So you have somebody that I don’t know, what’s a good example? You have a studio that sells yoga classes. You have somebody that has been four times in a row. Well, maybe for those of people there’s a text message about buying a seasonal pass or an annual pass versus you have somebody that came once and hasn’t been for six months. How do you get that person to reengage? And that’s a very different kind of message. So don’t send everybody the same message. Figure out what the different important segments are that you’re going to be reaching out to.

Alex Levin, Regal.io (11:04):

And then within the messages, you want to be as personalized as possible. Hi, first name. This is business owner name. I see you went to class at this date with this teacher, and it sounds like in that class you gave us a five-star rating. Okay. It makes it feel like in person. It’s one of my favorite SMS’s to send in businesses where things can go wrong. So take an example. In home services, often professionals can run late, and a lot of times businesses know that the professionals are run late, but they don’t take the minute to go tell the customer because it takes time. They don’t want to have somebody pick up the phone and say, “Hey, we’re late.” And that can only end up in bad things. Instead, if you send a text message that automatically goes out without any human intervention, says, “Hi, first name, I am so-and-so that booked you. I’ve been watching your account really closely, and I see the professionals late. Don’t worry, I’m on top of it. I’ll let you know if they’re more than an hour late.”

Alex Levin, Regal.io (12:03):

That was entirely automated, but it makes the customer feel like somebody is keeping an eye out for them, and that brand is not late and sort of pissing you off. That brand is, wow, they’re late like everybody, sure, but they looked out for me. Now, if the customer texts back, of course you can put them to a person, but most of the time the customer never texts back and you’ve now created a good experience out of what could have been a negative experience. So a lot of opportunities with SMS.

Dr. Tom DuFore, Big Sky Franchise Team (12:27):

One of the things that I found interesting, and one of the fun little forms you had on your website was just talking about taking some, let’s say old opportunities or old leads or maybe some old customers in a database and turning those into new opportunities or revisiting opportunities or prospective customers. Talk about how a marketing strategy can help bring them back from the dead.

Alex Levin, Regal.io (12:53):

Yeah, let’s talk about local businesses. One of the hardest part about local businesses is that your customers are not always in market. Plumbing being the very famous example. If you’re a plumber and you’re walking around saying, “I’m a plumber, do you need services.” 90% of the time people are going to say, “No, I don’t need a plumber right now.” Now all of a sudden, one day, six months from now, they’re going to need a plumber. So at some point, once or twice a year, people typically need a plumber because it’s not a highly recurring service, it’s a difficult one to go and market for. So I think it’s an example where once you do have a list of customers, you need to make sure that you’re staying top of mind with them. And so thinking about how you take that full list of customers and keep that stuff top of mind. For the two types of plumbing jobs, typically.

Alex Levin, Regal.io (13:36):

One is an urgent job. So for an urgent job, what’s important? Well, you need to make sure that your phone number is somewhere in their phone with the word plumbing, what the word emergency. So when they search, it comes up. So maybe it’s about sending them a digital V-card, a contact cards they can added to their list, and urgent plumber. Maybe it’s about understanding the hours. It’s about making sure they’re prepped and ready for that urgent service that happens once in a while. What’s the other kind of plumbing? Well, largely nice to have. So a lot of these jobs are going to be, “Hey, there’s a toilet that I’ve wanted to switch for six months, but I haven’t gotten on top of it because I didn’t know what toilet to buy. I wasn’t sure if I had how much it was going to cost. I didn’t know if the person would be available. I didn’t know if I was going to be available.”

Alex Levin, Regal.io (14:19):

There are some objections. So think through the objections and figure out how over a series of emails or texts or whatever it calls even, you’re helping people get through that. So if you see that the number one thing is they’re unsure what size toilet to get for their space, maybe that’s where you start explaining. Say, “Hey, everyone tells me they want to change their toilet but they’re not sure what to choose. Here’s the three toilets that I suggest, depending on whether you have one square foot, two square foot or three square foot available in order to… “, blah, blah, blah, blah, blah. And if you buy through me, you get 10% off on the toilet as long as you do it in the next three months. Now you’ve created urgency to do it because there’s a deal if they’re doing it faster. So think about again, the different segments, how you’re going to break down the objections, make sure you’re staying top of mind so that they can use you later.

Dr. Tom DuFore, Big Sky Franchise Team (15:06):

Excellent, Alex. Well, I’d be remiss if I didn’t ask this question in terms of how some of these strategies and techniques might apply to a franchise organization. Let’s just take a franchise company that maybe has a hundred, 200 franchisees in their network. So now you have these independent owners operating under the same brand, but there’s the corporate flagship. I’d love just to get your opinion or thought on that.

Alex Levin, Regal.io (15:31):

Yeah, so I’m by no means an expert in the franchise business. So start there, take everything I say with a grain of salt. But I think that one of the challenges, again, if you’re a B2B business is very similar to B2C, as you scale, how do you continue to engage your customer, your franchisee? How do you continue to educate them about changes? How do you continue to encourage them or get them to do the things you want to do? One of my favorite examples comes from Costco. When you go meet the very big wigs at Costco, run a lot of stores, they have these dashboards for certain things, and it’s like, did the store do X thing correctly and no, blah, blah, blah. And they go all the way down to every store and they’re so proud of what percentage of their stores did it exactly right. And they compete basically between each other.

Alex Levin, Regal.io (16:25):

And I asked them one day how they do this because it’s an enormous scale. And of course, a lot of it used to be very paper and pencil and sort of manual, and they’d send mail out. It shifted to SMS like, right? SMS is the number one channel these big retailers use to ensure compliance. They also have apps so often the SMS will link into an app that the person takes a picture or whatever. But even if there’s an app, they’re texting people, they’re getting them on their phone to say, “Hey, have you done X thing?”

Alex Levin, Regal.io (16:57):

And it, same in local services. When we were at Angie’s list and we were trying to get people to look at things, text message is the number one way to get somebody to engage if they’re a small business. So highly encourage you to use text messages as a methodology to ensure compliance and do what Costco did. Run a little competition between your big wigs. If one person runs east, one person runs central, one person runs west, compete between the three of them to see who is able to get the best compliance on the new product you’re rolling out or the new strategy that you’re using because friendly competition does help.

Dr. Tom DuFore, Big Sky Franchise Team (17:34):

Wonderful. Well, Alex, this has been a great conversation, and if someone’s tuning in and says, “I like what Alex is saying.” How can they get in touch with you, learn a little bit more about what you’re doing?

Alex Levin, Regal.io (17:43):

Sure. So like I said, if you have outbound contact centers, if you’re in these higher consideration spaces with more than agents, go to our site, regal.io know, email me at hello@regal.io. There’s all kinds of interesting new technology available to increase answer rate, have better conversations, drive more revenue per customer. So happy to chat about that.

Dr. Tom DuFore, Big Sky Franchise Team (18:04):

Well, this is a great time in the show where we make a transition. We ask every guest the same four questions before they go. And the first question we ask is, have you had a miss or two on your journey? And something you learned from it?

Alex Levin, Regal.io (18:15):

Many. So I say all the time that my last boss [inaudible 00:18:19] I worked for, spent more on my education than my parents did. At one point, I made a mistake in our marketing spend and spent an extra $800,000 in a quarter that I wasn’t supposed to basically. And that didn’t really result in any benefit and just blew this whole. So I hope that in the end, I offered more value to the company than the money I lost them. I think I did. Definitely, I made a lot of mistakes on somebody else’s dime. Honestly, that’s the deal. And I tell other people that story, and I say, “You should be willing to make mistakes on my dime now. That’s why I’ve hired you. It’s okay.” Now, if you make the same mistake, if I kept burning $800,000, I would’ve gotten fired. But if you do it once and you learn from it, then that’s a valuable learning. So that’s just one example. But there’ve been many.

Dr. Tom DuFore, Big Sky Franchise Team (19:04):

Wonderful. Well, let’s look at the other side. Let’s talk about a make or a highlight or two.

Alex Levin, Regal.io (19:08):

One of the sort of more fun things I’ve done for sure is starting Regal. And I think we were very lucky that when we came to market saying, here’s tools for these higher consideration businesses that want to out of personal touch online want to do better outbound, we went from zero to 3 million in revenue in the first year, which is quite unusual. So I think that’s a testament both to the pain point those customers had and the lack of existing products, but we played a little role in it and we’re there and making sure we gave them the right product. So we’re very proud of what we’ve built at Regal.

Dr. Tom DuFore, Big Sky Franchise Team (19:43):

Let’s talk about a multiplier that you’ve used to maybe grow yourself personally, professionally, or some of the businesses you’ve run.

Alex Levin, Regal.io (19:50):

I wouldn’t say this when you’re tiny. When you’re very small, this doesn’t apply. But as you get to a certain scale, I highly recommend for CEOs or executives that are doing a lot of scheduling, a lot of external calls to have an EA that’s trained in a very specific way. So an executive assistant that’s trained in a very specific way. So I use an organization called Mindmaven to actually do the training, but basically what we do is get them as involved as possible in my workflow so that I’m not doing some of it. So I’ll give you an example. After every call, I take little voice notes about what happened in the call so she knows and what needs to happen next, whether it’s writing an email, doing a task, telling somebody about something. So she knows all of it. She’s then in my email as me, and she actually looks at all my email, reads all of it, drafts responses. If there’s a new email, she drafts that and leaves it for me. The only thing she doesn’t do is hit send.

Alex Levin, Regal.io (20:41):

So when I go into my email, everything’s been sorted and pre responded to. So all I’m doing is hitting send, send, send or adding a little bit and hitting send. Massively speeds up my day. I used to spend an hour or two at the end of the day catching up, trying to remember what I need to do. Now it’s five minutes after each call where I’m doing that, and I can do work at the end of the day. So highly recommend that sort of collaborative way of working with your executive assistant. Like I say, use Mindmaven even take some training. It’s hard to get people to just figure it out, but huge unlock.

Dr. Tom DuFore, Big Sky Franchise Team (21:14):

Wonderful. Well, the final question we ask every guest is what does success mean to you?

Alex Levin, Regal.io (21:20):

One of the, I think fun conversations I had with my co-founder before we started was this exact thing, of what a success for you, what a success for me? Let’s make sure. So first of all, make sure you’re aligned with your co-founders what success means. So there’s a few pieces. So one is both of us agreed, we just liked the earlier stage company. At the last company, at Angie, we went to billion and a half in revenue, which seems successful, but honestly, we were having less fun. So part of success for us was being at an earlier stage company, doing something that was exciting for us, having fun every day. That was great.

(21:50):

I think the second part of it was building something very differentiated. So part of what’s fun about Regal, is there’s not a product like it in the market. We’re making a name for ourselves, we’re doing this very different thing. And that’s always great to see. That’s the second part. And I’d say the third part for sure is we have a lot of different shareholders, whether it’s employees or investors, we want to ultimately have those people have a good outcome. And so part of why people come to work for us is that they enjoy the work, but certainly we’d love to at the end of this, thank them for everything by making sure their equities were something. So that’s definitely part of the motivation is the financial outcome for all the shareholders in the company.

Dr. Tom DuFore, Big Sky Franchise Team (22:33):

Alex, as we bring this to a close, is there anything you are hoping to share or get across if you haven’t had a chance to yet?

Alex Levin, Regal.io (22:39):

I think you’ve covered the big ones for this sort of group, but like I said, the one point that I’d reiterate to people is don’t think that because you’re moving online, everything has to be digital. To the contrary, keep the personal touch, keep figuring out how to treat millions of customers like one in a million, that’s what makes you different. Take the banking example. Most online banks, they use the same infrastructure. So what’s the difference between one and another? Discount they offer or maybe their branding a little bit. No, really the differentiation and branding should be the service they provide. And if you provide real valuable service to the customer, they’re never going to leave even if you make a mistake. But if you don’t, and all you’re doing is providing the same exact technology as the next online bank, when you offer a discount, they’ll go to you. And when somebody else offers a discount, they go somewhere else. So think hard about how you keep a service and the way you’re engaging with the customer conversation as a point of differentiation.

Dr. Tom DuFore, Big Sky Franchise Team (23:37):

Alex, thank you so much for a fantastic interview. And let’s go ahead and jump into today’s three key takeaways. So takeaway number one is when Alex talked about how important it is to have a personal touch with your business and with your customers. And he said one of the most important things about that personal touch is knowing when an appropriate time is to keep in touch with those customers. And he said small businesses do this very, very, very well. By the way, it’s one of the reasons I love franchising is because you now have local owners that provide that personal touch in their local community to the customers that they serve. Takeaway number two is when he talked about SMS marketing and text message marketing. He said it’s important to make sure you are compliant with the rules and requirements around it, that you have expressed written consent and follow those guidelines and that you personalize it as much as you possibly can. So don’t just do a blanket, mass text message, include their first name or reference some buying behavior that they’ve been able to have.

Dr. Tom DuFore, Big Sky Franchise Team (24:45):

And takeaway number three is when he talked about your old leads or old prospective customers that you may have in your business, because he said they may not always be in the market. And I thought he gave a great example of describing a home services business where there might be an urgent or emergency type situation versus just a nice to have or when it’s convenient strategy. So being prepared to have emergency related language for that service for one. And then the other one is just maybe in the case he gave as, for example, with a plumber, a broken pipe maybe needs to get repaired immediately, or replacing a toilet that someone’s been thinking about for six months or a year, is one of those bonus or nice to haves.

Dr. Tom DuFore, Big Sky Franchise Team (25:34):

And now it’s time for today’s win-win. So today’s win-win is when Alex talked about, at the end of the episode, while many people, myself included, I fall into this bucket often where I think everything’s got to be digital, he really talks about keeping a personal touch with your customers. And even said, it’s almost ironic that he is in the digital marketing business, but keeping that personal touch is so important. And so he uses digital techniques to do that. But remembering things about your customers and remembering your customers and so on can really make an impact. So it will make an impact for your business, it’ll make a better experience for your customers, which ultimately will come back to happier staff, happier customers, and a happier owner of that business as well.

Dr. Tom DuFore, Big Sky Franchise Team (26:27):

And so that’s the episode today folks. Please make sure you subscribe to the podcast and give us a review. And remember, if you or anyone you know might be ready to take their company to the next level or franchise your business, please connect with us at bigskyfranchiseteam.com. Thanks for tuning in, and we look forward to having you back next week.





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