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Improving Marketplace Relationships with
Online Community & Soc ia l Software Solutions
June 2009
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Contents
Contents ................................................................................................................ i
Introduction ..........................................................................................................
2
The Internet Affect — Web 2.0 ....................................................................... 2
Online Communities ........................................................................................ 3
Marketplace Communities .................................................................................... 4
Marketing—Engaging Customers to Build Brand Loyalty ........................................ 5
Social Media Marketing—The Web 2.0 Medium is the Message .................... 5
Managing & Protecting Your Brand ................................................................. 7
Customer Support—Delivering Superior Service .................................................... 8
Streamlining Customer Support to Ensure Retention...................................... 8
Promoting End User Productivity & Customer Feedback to Increase
Competitiveness ........................................................................................
9
Partners—Accelerating Innovation .......................................................................11
Capitalize on the Ideas, Insights & Domain Expertise of Your Partners ......... 11
Implement Quickly and Affordably .......................................................................13
Technology ..................................................................................................... 13
Deployment ................................................................................................... 13
Culture ........................................................................................................... 14
Conclusion—the C‐Level Perspective ....................................................................15
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Introduction
Most companies today, regardless of location, size or industry focus struggle with the same things:
1. Vital corporate knowledge being trapped in information silos like email inboxes and structured
information systems like ERP and CRM (knowledge).
2. A limited understanding of organizational expertise (talent).
3. Creating their connected but globally dispersed workforce
(relationships).
These issues hamper productivity, decrease corporate capacity and
cripple the pace of innovation.
The Internet Affec t — Web 2.0
Over the last 10 years the Internet has changed our lives forever—
both from a social and a business perspective. Currently we are in a
technology phase that the experts call Web 2.0 — a set of new and innovative tools that take us beyond simple
browsing, searching and publishing of static web sites. These new Web 2.0 tools enable us to actively
participate, publish and interact with others on the web quickly, easily and at little or no cost.
Web 2.0 technologies are quickly changing how organizations, institutions and enterprises innovate, collaborate
and share knowledge. New user‐driven networked business models, practices and processes are emerging
where collaboration, contribution and sharing are promoted and rewarded within an organization. This cultural
shift is just starting to transform old hierarchical‐driven organizations into interactive, vibrant online
communities that are more agile, productive and competitive. Corporations, associations and academic
institutions are rethinking old business models and evolving their cultures to include Web 2.0 technology to
compete in an emerging global knowledge economy.
What is interesting is that many companies do not realize that networking is not a new concept in the business
world. Business users have been networking for decades, long before anyone had ever heard of Facebook or
Linked‐In. From the daily telephone conversations we have with our customers to conference room meetings
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with potential partners or the water cooler conversations with other employees; these are all early forms of
social networking and are still being used today.
Online Comm unitiesOnline communities are a great solution for companies looking for new and innovative ways to find information,
share knowledge, experience and ideas, and to build business relationships across organizational and
geographical boundaries. When implemented correctly, online communities can create tremendous corporate
capacity by connecting, empowering and motivating their most valuable business asset: people.
Two major online community types exist in every organization – Workplace and Marketplace.
A Workplace
Community
empowers
your
organization
to
quickly
and
easily
connect
your
workforce
across
geographically dispersed project teams, departments and business units to realize significant productivity gains,
foster innovation and drive employee engagement.
Marketplace Communities extend your network beyond the corporate firewall, allowing you to connect with
members, partners, customers and suppliers to deepen relationships, build trust and reward loyalty.
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Ma rketp lac e Communities
Marketplace communities drive, enhance and enrich your connections with your members, alumni, partners,
customers and
suppliers,
enabling
you
to:
• Build deeper and tighter relationships with partners and customers; increase customer retention.
• Accelerate innovation; advance from serial to parallel collaboration and development.
• Shorten project lifecycles; remove project roadblocks caused by poor or insufficient information.
• Improve processes; increase access to the experience and expertise of partners.
• Reduce duplicated efforts: share best practices and previous project information.
• Dramatically reduce operating costs through improved employee and team efficiencies.
• Improve competitiveness by centralizing resources and saving time.
This paper will focus on the business value of Marketplace Communities. Throughout the paper, we’ll use real
life examples or applications of Marketplace Communities to illustrate business benefits like:
• Improving customer engagement and access to marketing intelligence to build brand loyalty and sell
more products and services.
• Providing superior customer support to create deeper and more trusted relationships with your
customers.
• Connecting employees, partners, customers and suppliers within a global trading community to
collaborate and innovate to bring better products to market faster.
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Marketing—Engag ing Customers to Build Brand Loya lty
As consumers, we are exposed to a myriad of marketing messages on a daily basis. Due to this overexposure,
the trend
is
now
to
ignore
traditional
media
messages
and
rely
on
information
from
an
increasing
number
of
online (and trusted) resources—including consumer blogs, product reviews, videos and more. As consumer trust
in traditional media depreciates, it is becoming clear that marketers need to take a new approach: they need to
engage the customer and prove value. To start making any kind of impact, marketing teams need to become
involved in grassroots, consumer‐initiated dialogues like blogs and online discussions. An online community
supports this kind of customer engagement, connecting your marketers directly with your customers to build
relationships that result in an improved brand experience and more satisfied customers.
Soc ial Media Marketing—The Web 2.0 Med ium is the Message
An online community delivers innovative and new ways for marketers to engage with their key stakeholder
groups — analysts, media, prospects and customers. Since an increasing number of people are listening to
recommendations from peers or friends and reading competitive product reviews online, organizations are
becoming more interested in the ability to capture and capitalize on conversations that typically occur in an ad‐
hoc manner. As well, online communities provide marketers with the functionality required to find more
detailed information about their key consumers to increase sales and protect and enrich their brands.
Marketing
has
traditionally
focused
on
tracking
individuals
and
their
buying
behaviour.
A
Marketplace
Community offers both quantitative and qualitative methods for capturing buyer behaviour and measuring the
outcome, results and effectiveness of marketing initiatives. Quantitative metrics include measurable statistics
like site traffic, number of page hits, online surveys, increases in membership and even increases in
contributions, blogs and discussion forum postings. Qualitative information is much more subjective and
includes anecdotal evidence about the organic development of an online community or newly developed
partnerships that result from participation in the community. Consumer sentiment, opinion and trust are often
manifested in comments in blogs, ratings, discussion forums or the simple mechanism of “email to a friend”.
You can
optimize
your
online
community
with
quantitative
metrics
like
Google™
Analytics—built
right
in.
Providing real time statistical reporting and tracking fully integrated within the network, Google Analytics can
track any page that contains specified tracking code. Reports include site usage (page view, visits, bounce rate,
average time on site), visitor overview, traffic sources, content overview and conversions. For example, if your
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network is designed to drive consumers to a particular page, such as a purchase or registration page, you can
track the number of successful conversions that occur.
Fully integrated with your online community, Google Analytics can be used to measure valuable marketing metrics, including website traffic, buyer behavior, and more.
Blogs are an ideal tool for sharing and measuring experience, brand awareness and loyalty. A blog is an online
editorial or article that expresses an author’s opinion, observation or expertise on specific products, services,
events and more. Authorized members of an online community can create their own blog and/or comment and
pose questions to other bloggers within the network. Expert Blogger programs can be created, and because
members can
rate
or
recommend
almost
any
type
of
published
content
within
the
community,
viral
campaigns
can be generated around a key influencer’s blog. Members can also tag content and create tag clouds based on
the most popular tags within the online community. This information and content can be shared across the
internet, allowing you to create and support brand evangelists.
Social media contributions, including blog comments, ratings, reviews and videos are playing an increasing role
in calculating the value of a customer and tracking emerging behaviour. They allow organizations to monitor
sentiment about products posted in forums and blog comments and measure the influence of those articles on
buying behaviour by tracking the actions that encourage or discourage repeat purchase. Marketing departments
can utilize Web 2.0 social networking tools to measure buying behaviour and respond accordingly using
incentive programs, or by making product improvements or service enhancements.
Web 2.0 tools and consumer activity online are exposing marketing “spin” for what it really is. Online
communities—with combined features that include Web 2.0 tools, collaboration and knowledge sharing enable
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organizations to leverage these tools to engage with consumers in a more meaningful way. As a result,
organizations can create more meaningful dialogues and identify true brand champions that will help to build
brand loyalty and foster trust.
Ma naging & Protec ting Your Brand
An online community can function as an integral part of your brand strategy. Once you have identified and
profiled your brand advocates, you can use the community to protect and manage your key brand elements.
Since your brand helps to differentiate you from your competition, protecting it is critical. Because it centralizes
all of your intellectual property within a secure, online environment, an online community can be used as an
online style guide, where you can ‘make public’ approved versions of your logo, corporate templates,
messaging, positioning, rules of usage—everything employees need to make sure that your brand is represented
appropriately to
each
stakeholders
at
every
touch
point.
Images,
such
as
logos
or
a corporate
image
library,
can
be stored, organized and managed in shared albums in an online Photo Gallery. Rules of usage can be posted in
a wiki which can be continuously updated to ensure consistency. Partners and suppliers can subscribe to each
item and receive email updates (instantly, daily, weekly or monthly) when new images are added or modified.
An online community can enhance the quality of your marketing initiatives. You can use it to deliver fully
integrated customer‐facing campaigns and incorporate online and offline metrics to determine the effectiveness
of each initiative. The community also provides profiles your customers, identifies key buying behaviour and
encourages
consumer
engagement
at
multiple
touch
points,
which
results
in
improved
retention
based
on
a
direct, one‐to‐one relationship with the customer. A relationship that brings together your marketers and your
customers—and other involved departments or teams, including product development and consulting—to
release improved products and services to better meet your customers’ needs.
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Customer Sup port—Delivering Sup erior Service
It’s an old adage that a happy customer is a loyal customer. In today's competitive markets, customer retention
and customer
loyalty
are
more
important
than
ever.
Especially
when
you
consider
that
the
cost
of
acquiring
new
customers runs 8 to 10 times more than the cost of keeping existing ones.
To provide superior service, your support team needs to create deeper and more trusted relationships with your
customers. This becomes a challenge when customer information is distributed over many systems throughout
your organization and your support staff is unable to find the information needed to resolve customer issues in a
timely manner. Valuable lessons learned from previous inquiries are not available to help solve current issues.
Your customer service representatives are unprepared and the resolution of customer complaints is handled
ineffectively. As a result, your customers become increasingly unsatisfied, costing your company time and
money.
Strea mlining Customer Support to Ensure Retention
A Customer Care Marketplace Community can result in faster client service by giving employees and customers
real time access to technical information. Customers can access the network from any place, at any time.
Organizations can build a highly interactive and comprehensive self ‐service online support community or "one
stop shop" for product info, beta program, upgrades, FAQs, and more based on customer requirements and user
generated
content.
Web 2.0 functionality, including blogs, wikis and forums, can be used as push mechanisms to publish
information to customers and facilitate interaction.
• Support forums cover a wide range of topics, including beta program feedback, bug reports, feature
requests and member or administrator support. They can be used to solicit feedback from customers
regarding new feature requests and product developments.
• A support
Wiki—a
collection
of
web
pages
that
people
can
access,
contribute
to
and
modify
online—
can be set up as a living, breathing document that always contains the most recent product‐related
information. Your support team can manage a wiki as a self service support site where customers can
participate to refine and improve the site, as well as your product and service offerings.
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• Organizations use blogs to regularly publish upgrades, bug fixes and new product releases to their
customers, partners and user groups. Engineers can make project information public using blogs and
collect valuable feedback from customers. Customers can also create their own blogs and comment and
pose questions
to
other
bloggers
within
the
community,
stimulating
customer
input
and
involving
your
customers directly in the product development process. Using a Customer Care Community, you can
find out what your customers really think about your products, enabling you to make the necessary fixes
and create and support product or service evangelists.
Prom ot ing End User Prod uc tivity & Customer Feedback to Inc rea se Com pet itiveness
Customer service representatives can establish and use an established Community of Practice to save lessons
learned and identify the expertise needed to resolve difficult issues. An online community supports best
practices— extending
the
dialogue
to
customers,
partners
and
suppliers—to
educate
your
stakeholders
about
new products and service offerings.
A Customer Care Community keeps your customers engaged and your service representatives productive
You can also extend your organization’s reach into User Group Communities to involve your customers in
upcoming releases, beta testing and more. Engaging your users in online community groups will ensure that you
deliver more effective products and a higher quality of services to your end user community.
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By directing customers to a Customer Care Community, Customer Service Representatives (CSRs) are freed up to
use their time wisely and answer more pressing telephone inquiries. An online community improves access to
information, ultimately improving employee productivity and customer satisfaction.
Organizations can gain valuable insight into customer behavior by analyzing the customer dialogue within a
Customer Care Community. Feedback around new products or ideas can be solicited and both customers and
partners can be engaged to include a larger audience in the development process—accelerating product life
cycles and increasing an organization’s competitiveness. Valuable insights into customer preferences can only
result in improved quality of service.
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Partners—Ac c elera ting Innova tion
Market pressures are continually forcing organizations toward greater efficiency and productivity. Controlling
costs is
only
one
part
of
this
equation.
Increasing
the
quality
of
products
and
services
is
another
and
this
requires a continued commitment to developing innovative ways of doing business with partners and
customers.
A Marketplace Community delivers all of the tools you need to create, sustain and manage a global partner
trading community where the borders and barriers between partners and suppliers are replaced by virtual
teams, improved operational efficiency and increased profits.
Delivered on a SaaS (software as a service) model, a global trading community can inexpensively and seamlessly
extend your organization’s reach directly into the business operations of customers, partners and suppliers. A
Marketplace Community makes it possible to quickly involve partners and suppliers in your development or
value chain, without costly upgrades to existing systems.
Ca pita lize o n the Idea s, Insights & Domain Expertise o f Your Partne rs
A Partner Community gives everyone in your organization increased access to expertise, information and
resources. Project teams can be created on the fly, participant roles defined and any relevant information stored
in
a
central
and
secure
online
environment.
Online
marketplace
community
solutions
accommodate
every
type
of project, from processes like Requests for Proposals (RFP's) to short term events such as joint marketing
efforts with partners outside of the firewall.
All information within your Partner Community can be searched, bookmarked, commented on, tagged, edited
and subscribed to by email or RSS by any authorized person. This allows your partners to be “in the know” when
relevant information, such as requirements, RFPs, product specifications or suppliers, changes. Your partners are
guaranteed immediate and secure access to the most up‐to‐the‐minute information and the expertise they need
to help them do their jobs. External organizations like supplier companies can access updated requirements
posted online,
for
example,
and
bid
on
them,
making
your
Partner
Community
a hub
of
efficiency
in
your
organization.
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Use an online partner community to aggregate the information your partners need to work with you to develop
new products and services. As projects are established, specialists such as engineers in the construction
industry, for example, can communicate and share documents with co‐workers and partners from the work site
via the
partner
community.
Marketplace
Communities
enable
employees,
partners,
customers
and
suppliers
to
use familiar Web 2.0 tools to easily collaborate; reducing the time it takes to create proposals, for example, by
replicating best practices online.
Use a Marketplace Community to aggregate the information your partne
need to work with you to develop new products and services
A Partner Community delivers a secure platform with standard security features like SSL, role‐based security and
audit trail. Members of the community can log into the system and begin collaborating with external partners
and suppliers without having to worry about the integrity or security of their data.
Along with your customers and employees, you can leverage a Partner Community to incorporate your partners
and suppliers
into
your
internal
processes
and
convert
them
into
your
most
vocal
supporters
as
a trusted
source
of feedback and reliable innovation.
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Imp lement Quic kly and Affordab ly
The introduction of any online community requires the effective management of people, process, and
technology during
implementation
and
deployment
to
ensure
success.
It goes without saying these tools must adhere to corporate governance policies and practices set up by the
organization and made available in a formalized, controlled and secure environment. Managers need to become
enablers in this new world and not gatekeepers. It requires changes in existing business models and corporate
culture.
To get you started, we have included some recommendations which can significantly help your organization to
successfully deploy an online community.
Tec hnology:
• Applications — identify the right applications for workforce. Depending on the project and the
demographic of your workforce (location, age, technical abilities, etc.) different applications and
integrations may be needed. For example, Gen Y will most likely want use text messaging and a wiki;
while Gen X will want to use documents and email.
• Security — ensure that your corporate data is secure including storage, transmission, accessibility and
auditing.
• Extensibility — look for solutions that will integrate seamlessly with your desktop applications,
enterprise solutions and mobile devices.
• Administration — identify your business requirements around controls for configuration, measurement
and monitoring of information and collaboration.
Deployment:
• Pilot — identify a known business problem with a high probability for success to show quick time‐to‐
value and
learn
from
your
experiences.
• Bottom Up — empower your employees and make them part of the decision making process – as your
employees will ultimately be the key contributors to the online community or network.
• Measurements — identify key measures of success including risks right from the start.
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• Outreach — create and implement outreach and awareness campaigns to stimulate usage and
excitement.
Culture:
• Generational Gap — identify, recognize and plan for the differences between how different generations
utilize and consume information within your organization.
• Change Management — changing behaviour is difficult; plan on finding champions to promote the
network; implement incentive programs; code of conduct and best practices.
• Feedback Loops — create easy to use feedback tools in your community such as polls, blogs and rating
that can provide critical insight into future investments and deployments.
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Conc lusion—the C-Level Perspec tive
With the ever changing workforce (more distributed; more mobile; and more technology savvy) and the Web
expanding to
include
new
communications
and
collaboration
tools,
online
communities
are
becoming
increasingly recognized as a powerful business application that connects an organization with its customers,
partners and suppliers to build trust and loyalty, and increase revenue. There is a growing interest today in how
organizations can participate in the evolution of online communities and leverage supported Web 2.0
technologies to capitalize on new opportunities.
From a C‐Level perspective, a Marketplace Community provides more visibility into partner and customer
preferences. It gives managers the ability to monitor key processes and performance—and discover where
efficiency and innovation lies. Managers can quickly and easily see who is blogging, commenting on, rating,
subscribing to, contributing and accessing key resources in their network. They can take their community’s pulse
and discover newfound insights into buyer behaviour, partner initiatives, process efficiencies and how key
stakeholders connect outside the firewall.
Information is made transparent by the network—it is bubbled up where it can be used and developed to
reduce rework and improve processes and sales. A Marketplace Community puts communication back into the
hands of key stakeholders, letting partners, customers and suppliers choose to receive, read, discuss and
contribute based on their participation, without being intrusive or a waste of time. Organizations can use a
Marketplace Communities
to
track
buyer
behaviour,
develop
deeper
relationships
with
customers,
bring
better
products to market faster and deliver superior customer service.
Marketplace Communities are fundamentally changing the way organizations conduct business—today and into
the future. For more information, visit www.igloosoftware.com.
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IGLOO develops online community and social software solutions for groups, teams and organizations of any size.
Our solution suite combines Web 2.0 technology with on‐demand hosting, consulting, e‐engagement and all of
the community support services necessary for a sustainable and successful deployment. Organizations use
IGLOO communities internally to improve employee productivity (Workplace Communities) or externally to
foster relationships
with
members,
customers,
partners
and
suppliers
(Marketplace
Communities).
Fully
integrated collaboration, knowledge sharing and Web 2.0 social networking tools enable organizations to quickly
and cost‐effectively create online communities to leverage talent, knowledge and relationships across
organizational and geographical boundaries. IGLOO is funded by RBC Venture Partners. Jim Balsillie is Chair of the
IGLOO board.
If you would like more information on IGLOO’s Marketplace Community platform, please contact us at:
Toll free: 1‐877‐ON‐IGLOO (1‐877‐664‐4566)
By email: [email protected]
22 FREDERICK STREET, 6TH
FLOOR
KITCHENER, ONTARIO, CANADA N2H 6M6
TEL +1.519.489.4120
FAX +1.519.489.4121
www.igloosoftware.com
© Copyright 2009 IGLOO Inc. The copyright to these materials is owned, without reservation, by IGLOO. These
materials may not be copied in whole or part without the express, written permission of IGLOO. The information in
this document is subject to change without notice. All rights reserved. Printed in Canada.
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