What is a social media follower worth to your business?

Key takeaways

The value of a social media follower is the gross profit your followers produce in a year divided by the average number of followers. For most small businesses it ranges from almost nothing to tens of pounds, and it depends far more on who follows and how you convert them than on the platform.

• Formula: annual gross profit from social customers ÷ average followers.
• Illustrative: £18,000 ÷ 3,000 followers = £6 a follower a year.
• Wrong-fit followers are worth close to £0.
• Raise value by converting better, not by buying reach.

Why calculate what a follower is worth?

Calculating what a follower is worth tells you how much it is sensible to spend to gain one, and whether growth is adding value or just numbers. A follower value is a business measure, not a vanity one: it ties the account to profit.

• How UK businesses can turn social media followers into customers
• Vanity metrics on social media and what to track instead

How do you calculate it?

Add up the gross profit from customers who came from social media in the last 12 months, then divide by the average number of followers over that year. Gross profit is sales minus the direct cost of delivering them. Use the customers you can attribute, by asking how they found you and by tracked links.

• Customers from social in 12 months: 30.
• Average gross profit per customer: £600.
• Gross profit: £18,000. Average followers: 3,000.
• Value per follower: £6 a year. All figures illustrative.

• 'How did you hear about us?' Asking the question properly

Why does the value vary so much?

It varies because the share of followers who ever buy, and what each buyer is worth, differ hugely between businesses. A kitchen fitter with 800 local followers can earn more per follower than a clothing brand with 80,000. Fit, price and the conversion path matter more than audience size.

• Follower quality vs follower count for small businesses

How do you raise the value of a follower?

Raise follower value by converting more of the followers you have and keeping the customers they become. A clearer offer, a shorter path, faster replies and repeat purchases all raise it. Buying followers or running giveaways usually lowers it, because they add people who will not buy.

• Repeat purchase rate: turn first-time buyers into regulars
• Social media giveaways in the UK: rules and real results

What should you spend to gain a follower?

Spend less to gain a follower than the follower is worth over the time you expect to keep them. If a follower is worth £6 a year and you keep followers for two years on average, paying £1 to £2 for a well-targeted follower can make sense. Paying for followers who do not fit is never worth it at any price.

• Social media customer acquisition cost: what is a good CAC?

What are the limits of this number?

The number undercounts. Followers who buy after searching your name, or who recommend you to a friend, may never be attributed to social media. It also blends very valuable followers with worthless ones. Treat it as a floor and a trend, not an exact price.

• Dark social: the enquiries your analytics never show

What does this look like in practice?

A pattern we see: a business is offered a campaign to double followers. Working out follower value first often shows that improving the path and replies would add more profit than doubling an audience that already converts poorly.

• See client work
• Social Media Marketing for UK businesses
• The follower conversion scorecard: find where buyers drop out

Follower value checklist

• List customers from social media in the last 12 months.
• Work out average gross profit per customer.
• Find your average follower count for the year.
• Divide to get value per follower.
• Compare it with what you pay to gain followers.
• Recalculate every six months.

Next step

Count last year's customers from social media and multiply by average gross profit. That number is the starting point for every spending decision on the account.