Q2:

CLV=monthly profit * customer lifetime in months – acquisition cost

Months=(1/churn rate)

Owner Ollies: (information from the reading and the case)

Acquiring cost $1000
Churn rates: 4.3%
Months=1/4.3%=23.26
Monthly profit=$250
CLV=$250*23.26-$1000=$4,815

Marketer Marys:
Acquiring cost $5000
Churn rates: 3.2%
Months=1/3.2%=31.25
Monthly profit=$500
CLV=$500*31.25-$5000=$10,625

B2B:
Churn rate: 3.3%
Months: 1/3.3%=30.3

B2C:
Churn rate: 6.0%
Months: 1/6.0%=16.67
Cost of B2C=(11/31)*1000+(20/31)*5000=$3581
Month ongoing fee=(11/31)*250+(20/31)*500=$411
CLV=$411*16.67-$3581=$3270.37

Q3:
Analyze market size of each segment:
Market size/Market Demand=the number of buyers in the market * annual quantity
purchased by an average buyer * the average price paid for a unit

The number of buyers in the market: (Table C)

 Ollies(with 1-25 employees): small+very small=632682+1043448=1,676,130
 Marys(with 26-100 employees): medium=526,355
 B2B(half of all): 2289023*50%=1,144,511.5
 B2C(half of all): 2289023*50%=1,144,511.5