Subscriber Churn - Summary version

1. July 2012
Summary Version
CHURN

2. 2
Current Churn Levels
Daily Sales Report
(as of 6/28/12) OVERALL ANNUAL MONTHLY
OVERALL _._% _._% _._%
TELESALES _._% _._% _._%
ONLINE _._% _._% _._%

3. 3
Sales Team - Inbound Lifetime Churn
3 mos 6 mos 9 mos
Total Average _% _% _%
Team A _% _% _%
Team B _% _% _%
Team C _% _% _%
Sales Team - Outbound Lifetime Churn
3 mos 6 mos 9 mos
Total Average _% _% _%
Team A _% _% _%
Team B _% _% _%
Team C _% _% _%
Team D _% _% _%
Team E _% _% _%
Team F _% _% _%
Team G _% _% _%
INBOUND:
• 1 of every _ subscriptions cancel in _ month
• 1 of every _ subscriptions cancel in _ months
• 1 of every _ subscriptions cancel in _ months
OUTBOUND:
• 1 of every _ subscriptions cancel in _ months
• 1 of every _ subscriptions cancel in _ months
• 1 of every _ subscriptions cancel in _ months
The average lifetime of an:
• Inbound monthly subscription is __ months
• Outbound monthly subscription is __ months
• Sales Partner monthly subscription is <__ months
Avg Subscription Lifetime – IB vs. OB
[Prepared by Finance and BI]
* Data as of 05/04/12. Churn was defined differently during this time (previous definition included cancellations occurring within the same period).
* Data is not normalized and captures a moment in time. Teams are in constant flux with different sizes and/or longer operating history than others.

4. 4
Preliminary findings suggest that Sales Partners subscriptions are churning at a
slightly higher rate compared to our Sales teams
Subscription churn (by partner):
• Partner A __% after 5 months
• Partner B __% after 5 months
• Partner C __% after 5 months
• Partner D __% after 5 months
Sales Teams have slightly better early subscription churn numbers (__._%)
than our Sales Partners (__._%).
However, with the exception of Partner A, our Sales Partners appear to have
notably better late subscription churn rates than our Sales Team (__% vs. __%,
respectively).
Sales Partner Lifetime Churn
3 mos
Total Average __%
Partner A __%
Partner B __%
Partner C __%
Partner D __%
Avg Subs Lifetime – Sales Partners
[Prepared by Finance and BI]
* Data as of 05/04/12. Churn was defined differently during this time (previous definition included cancellations occurring within the same period)

5. 1.4% 1.5%
1.9%
2.6% 2.6%
4.0%
4.4% 4.5%
5.0%
att web sirius vonage earthlk concur dbcc taleo conexys
5
Benchmarks versus peer companies
DBCC on par with other leading subscription-based businesses
Monthly Average Subscriber Churn*
* As of Apr-2012. Based on public filings. Churn may be defined and/or calculated differently across each organization.

6. 38%
23%
11% 10%
6%
4% 3% 2% 2% 1% 0%
No Value /
Need
Could Not
Contact/Calls
Not Returned
Cannot Afford Did Not want
Auto-Renewal
Not Explained Out of Business Confirmed, Not
Authorized
Dissatisfied -
Bad Customer
Service
Dissatisfied –
Data Issue -
Trade
Fulfillment
Purchased
wrong product
All Others
6
Top 10 Cancel Reasons
Why Do Our Subscribers Cancel?
[Prepared by Customer Service]
Sampling of ~12K contacts off a 8%
response rate of 140K total contacts
Product Customer sees little / no value in continuing subscription
Technical Unable to auto-renew credit cards / unable to contact customers
Financial Customers going out of business / unable to afford continuing subscription
Competitive Customers see more value in alternative products
Four Categories of Subscriber Churn

7. 7
% of Total across Four Categories
45%
32%
19%
4%
Product Technical Economic Competitive
Technical Financial Competitive
Common reasons why we believe our Subscribers cancel:
Insufficient Value
Proposition
Sales / Marketing Practices
Pricing / Packaging
Product Confusion
SMB-specific
characteristics
Financial Hardship
Vendor / Partner Issues
(D&B Suppressions)
Direct competitors
Negative press
(Poor brand perception)
Out of Business
CC Failures / Transaction
Processing
Data / Systems Availability
Product
Product or Service
Dissatisfaction

8. 15%
8% 12%
2%
30%
24%
7%
Product Technical Economic Competitive
8
What is Addressable?
Technical Financial Competitive
We believe that roughly 2/3 of our churn can be addressed
Insufficient Value
Proposition
Sales / Marketing Practices
Pricing / Packaging
Product Confusion
SMB-specific
characteristics
Financial Hardship
Vendor / Partner Issues
(D&B Suppressions)
Direct competitors
Negative press
(Poor brand perception)
Out of Business
CC Failures / Transaction
Processing
Data / Systems Availability
Product
Product or Service
Dissatisfaction
NON- ADDRESSABLE
ADDRESSABLE
67%
33%
45%
32%
19%
4%

9. 15%
8% 12%
2%
15%
12% 4%
Product Technical Economic Competitive
9
Quantifying Optimal Churn
Technical Financial Competitive
A 30% decrease in total churn (4.4% to 3.3%) will result in:
Product
30%
20% 16%
3%
Insufficient Value
Proposition
Sales / Marketing Practices
Pricing / Packaging
Product Confusion
SMB-specific
characteristics
Financial Hardship
Vendor / Partner Issues
(D&B Suppressions)
Direct competitors
Negative press
(Poor brand perception)
Out of Business
CC Failures / Transaction
Processing
Data / Systems Availability
Product or Service
DissatisfactionADDRESSABLE
NON- ADDRESSABLE
67%
33%
Churn is impacting DBCC at…
$_M in Year 1 and $_M in Years 2+
If we can reduce total churn by 30% (to 3.3%)…
Revenue Impact of $_MM in Year 1 and $_M in Years 2+

10. 10
Strategic Action Plans
PROJECT OWNER(S) TIMING STATUS
Continue testing with Activations team (calls) Maria Now Ongoing
Evolve efforts from customer acquisition to lifecycle marketing Judy Now Ongoing
Reposition company to include more SMB-themed messaging Judy Now Ongoing
Launching Freemium product Judy Now Ongoing
Clinton Global Initiative – monitor DBCC customer success Judy Now Launched; Monitoring
Introduce a quarterly product; replace monthlies with quarterlies Bill Q3 2012 In Testing
Increase the mix from monthlies to annuals Bill Q3 2012 Analyzing with Finance
Review transactions / Renewal stats with ASDF Aaron, Wisdom Q3 2012 Requires prioritization
Examine findings from Account Updater David Q3 2012 Requires prioritization
Analyze BIN data (Prepaid Credit Cards) Aaron Q3 2012 Requires prioritization
Hire agency to execute Education Initiative - plan is drafted Judy Q3 2012 Requires prioritization
Design softer selling approach Bill Q4 2012 In Planning
Deeper customer segmentation and analysis Garrett Q4 2012 Ongoing
Conduct phone surveys based on Customer Churn survey Judy Q4 2012 Not Started
Review 3-2-1 process Aaron Q4 2012 Not Started
One-sheets on SMB advocacy initiatives for customer-facing teams Judy Q4 2012 Not Started
Improve Credit Signal to have fraud prevention/ insurance policy spin Aaron, Judy Q4 2012 Not Started
Message customers better on Trade References and using them Aaron, Judy Q4 2012 Not Started
Message customers better on DS status and getting out of it Aaron, Judy Q4 2012 Not Started
Develop an “introductory, entry-level” product package Bill, Judy Q4 2012 In Planning
Conduct a second, non-blind Customer Satisfaction Survey with Marketing Judy Q1 2013 Not Started
Develop mechanized retention messaging based on customer profile activity Judy, Aaron Q1 2013 Not Started

11. 11
NAME OBJECTIVE STATUS
Reduce Telesales
Commissions Credit for
Monthlies
Increase Annual to Monthly Mix on future product sales
Rejected by Sales leadership
due to employee turnover
Sales Partners Monthly
Subscriber Mix
Limit Sales Partners to no more than 15% Monthlies
Implemented/Continuing to
drive towards objectives
Begin Testing Quarterly
Subscriptions
Evaluate quarterly subscriptions as an alternative to Monthlies
Being evaluated by Sales
leadership
Cross Selling Evaluation Determine the churn costs vs. benefit of cross selling
Analysis underway with
BI/Finance
Customer Churn
Segmentation
Identify churn characteristics by business type
In Business Intelligence
prioritization queue
Quantify Churn % of
Subscribers who have not
logged-in
Understand if churn is significantly higher among subscribers
who have not logged-in
Analysis concluded indicating
no significant difference in
churn
Conduct testing on
Activation Communication
Determine whether post-purchase communications are effective
in reducing customer churn
Current research distributed;
A/B testing to be performed by
Marketing
Completed Ongoing
Projects – Completed / Ongoing

12. 12
NAME OBJECTIVE STATUS
Various CC Decline Rates Do Amex / Visa / Mastercard decline differently?
($450K)/year impact using
Amex over MC/Visa
Online Source Attribution Identify whether online sales churn differs by source
Online Analytics to provide
data with new system
Churn timing
Identify when various product types tend to churn and
implement retention campaigns
Finance working with BI on
prioritization
Credit Card Charge Code -
Phase 1
Change charge code in Cybersource to improve auto-renewals
Change had minimal impact on
decline rate
Credit Card Charge Code -
Phase 2
Gauge impact of limiting information submitted for payment
processing
Results pending
Identification of prepaid
CC’s
Determine if we can identify pre-paid cards at the time of
initialization
Being investigated by Tech
Product Fulfillment Improve product fulfillment by D&B To be discussed with D&B
Product churn
segmentation
Determine if certain products churn higher than others Pending BI prioritization
Completed Ongoing
Projects – Completed / Ongoing (cont.)