Spring 2009 issue of Horizons

Raise Your Expectations CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS

How do you build a successful business model for each new division? As in any business, we create our products and services knowing that they will be refined as we go along. You cannot predict every need or nuance, but if you have the basics done right, it is easy to add or change features to any particular product. Our core enterprise technology allows our products and services to adjust to client and market demand. As the chairman and CEO, how do you unify your executive staff and push the company forward as a single entity? Each of the division heads runs his or her own business unit, but all of us meet in person every quarter. At the end of the day, we are one company. Overall, we have a common strategy made operational by our common software platform. We have company goals and business unit goals, which combine to provide energy and focus for all of our teammates. I think companies should have an enterprise software system that serves their business, and as the market dictates, they can launch different promotions for different products within a short period of time. With so many different software systems available today, including Meridian’s, you can definitely do that. You do not have to wait; you can react immediately to market needs and reward salespeople very quickly. With a database like this, you know which products your salespeople have sold the most of and you can direct promotions to those particular activities. Meridian came up with the Meridicard ® concept in 1987, and it was awarded one of the first method patents. Meridian’s divisions offer a variety of marketing services, from e-commerce to loyalty programs. What marketing tools should every company have in its arsenal to successfully sustain business over the long term?

Which division was Meridian’s first? How did you determine this was the best direction for the company? Our group travel division was our first, selling to users of corporate incentives. We then added communication pieces and then rewards fulfillment products such as a merchandise catalog. Because of the positive results our clients were experiencing, we expanded these products, and to keep up with the demand, we created our own proprietary software, tracking sales and calculating points that companies would earn for selling a particular manufacturer’s product. This software provides a variety of reports, including personal and company-wide analytics, and is the engine that runs our entire business, which has grown to be almost entirely Web-based. What benefits do incentive programs offer companies? Companies employ many methods to improve their results within their distribution channels. These incentive programs bring focus to a company’s product. Incentive programs drive behavior – either increased purchases, increased sales, improved product knowledge or employee retention. When the performance has been achieved, the company rewards that person with points that they can redeem for awards, which the client has chosen. Typically, these awards are online merchandise or group trips. We also issue debit and credit cards with the MasterCard or Visa brand. Meridian came up with the Meridicard ® concept in 1987, and it was awarded one of the first method patents. We have had good success with it. The Meridicard ® offers participants the ability to use their points on whatever they want – their kids, paying off school loans, etc. We customize each card with the corporation’s name so that every time the holder pulls the card out, he/she is reminded of the company who is sponsoring the incentive activity. We call it “share of wallet,” and it is a powerful concept in incentives. How do you roll out new divisions and services? We do not develop products or services unless we see demand from more than one client. We start with one client, making sure that we have the technology, service or product to a point where it works well and is viable for additional clients.

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