Thoughts on Klout and Psychology

PETER SHANKMAN

POSTED ON October 25th, 2010

79 COMMENTS

While in San Francisco last week, I had a spectacular opportunity to have lunch with Philip Hotchkiss, Joe Fernandez,, and Ash Rust, the three heads of one of the hottest social media companies currently out there, Klout.

For those living under a half-mile of earth for the past 69 days, Klout is making quite a stir lately, as the company that’s assigning each user of social media (Twitter, Facebook, and the like) a “score” to determine their influence in the online world.

The more you engage, the more people find you interesting enough to respond, repost, or retweet your information, the higher your Klout score will go.

Essentially, Klout is using various algorithms to determine your relevant worth in the online world.

And as Orwellian as that may sound, I believe that they’re onto something so huge, it’ll change not only the concept of social media, but how global marketing sees us as a customer. And, while it’s doing that, it could quite possibly put some companies that are now seen as “darlings” right the hell out of business.

The new marketing overlords?

To understand my rationale here, you’ve got to agree to two points.

Point A: People like recognition, whether they say they do or not. We all want to be recognized in some fashion.

Point B: The more a company or brand can find out about a customer, the better they can market (sell) to them.

If you’re cool with both those points, then here’s my reasoning:

Let’s say tomorrow, two people take a plane flight. They both go to London, and they both have about 3,500 Twitter followers.

Let’s say they both have crappy flights. Not so much of a stretch, nowadays.

Both of them could Tweet about their bad flight experience, and both may get some kind of nod from the airline – “Sorry about your flight,” or whatever. Because right now, from a cursory glance, the airline knows that they both flew flights that sucked. That’s about it.

Enter Klout. What if the person who complained was linked to Klout, and the airline paid Klout for that data? For the airline, it’s no longer just about finding out that a customer had a crappy flight – It’s finding out everything about that customer, and tailoring your “fix” for them accordingly. If three of the top five relevance items Klout mentions about one of the two customers are “airline” “frequent” and “first class,” the airline has much better ammo with which to go in and fix the problem.

Check out what Klout has on Denise Richards, for example. Or CC Chapman. Or Johnny Jet (and check out that Johnny Influences American Airlines!) Or even me.

That, my friends, is real information. Forget the score part of it, – The value of Klout is behind the number – It’s about identifying each user, and seeing what they can do for you – I.e., What is the lifetime value of a passenger’s experience?

I’ve said it before – Twitter follower numbers alone don’t matter – They’re just the new penis envy.

If Klout knows that I talk a lot about flying because I’m constantly traveling, the airline to whom they sell that data can measure my experience on a heavier scale than say, the person who complains and has taken one flight in the past four years and act accordingly.

My first thought specifically to Klout and airlines was one of cynicism – Airlines want to make money – They don’t care about social media as a whole, they care about CPPM (Cost per passenger mile) and RPS (revenue per seat.) But then, the more I started thinking about it, the more I realized it mattered.

Think about it: If I recommend (or recommend against) an airline, my recommendation has more “strength” to my audience because my audience knows how much I fly. This is the inherent value of a customer. If Continental or whomever can measure that inherent value, they can do a better job or monitoring my satisfaction, and upselling me based on it. Additionally, they can determine whether I still matter to them, now not just by my revenue, but by my influence within the online world – And the higher my influence, the more it can lead to sales.

Let me put it another, easier way:

As Ash Rust, one of the heads of Klout said to me over lunch: “A person visiting a wine store isn’t automatically a wine expert.”

The second he said that, it was like a lightbulb went off, and I realized the intrinsic power of Klout: Klout tells you more about your visitors from the moment they walk in the door, than any other site or data mining company out there.

If I can find out who you are and immediately find the five things you talk about the most, as a marketer, that’s pure, instant gold. If I own a wine store, and you walk in with a Klout score of 63, and I immediately know the top five things you talk about include “Wine,” “Vintage,” “Cabernet,” etc., I’m going to kick your experience up a notch, and possibly gain a very lucrative (this is key) customer for life.

I’ll take it a step further and say that Klout, without even trying, may be subliminally putting FourSquare out of business.

Think about it: What does “being a mayor” tell the store owner? That this person likes to come in a lot. But if I can see your Klout score and know that not only do you visit here, but you’re a wine aficionado, who tweets about wine and recommends wines and places to get them to your friends… Well… That changes the game for me! I don’t give a crap about a foursquare mayor anymore – I’ll look to Klout for my marketing information.

Best part? As a customer, I don’t have to do anything to let this marketer have my information – I just have to live my life. No check-ins, no location based games – I just live, tweet, share, engage.

The Palms has done this with Klout scores – How you rate and what you discuss, (your level of influence) determines what perks or upgrades you’re going to get.

Imagine when every company with whom you interact does this.

Here’s the main reason I believe Klout will thrive and dominate: In my opinion, Klout also marks the first time that a company is actively mining us for our activity, and not only don’t we care, but we actually welcome it!

Fact is, we all want to be recognized. It’s one thing to have something assign an “online” number to you, without the added component of offline – The added component is where Klout rules – I have no problem being assigned a number if it means I can cut the line at a hotel and get a room upgrade. I doubt you would, either.

To back up my thoughts, I asked someone much smarter than me if I was right – I asked Dr. Jennifer Hartstein, one of the top psychologists in New York City, and part of the CBS Early Show family what she thought about Klout. Her response:

Life continues to be a popularity contest, regardless of our age. The higher our score, the more influential we are, the more important we feel. There is also a sense of validation, yes, people get at being recognized in places others aren’t, not to mention the perks of upgrades, extra “stuff.”. People fundamentally want to be taken care of, and all that stuff provides that opportunity.

Klout is letting companies do that. Who doesn’t want to be greeted personally, the second they walk into a hotel, bypassing the 100 poor suckers waiting on line?

Dr. Hartstein adds:

Life is a competition. There is absolutely a standard that people want to reach, maintain, have, etc. Bragging rights are enjoyed by many. It goes back to where people find their worth and what’s important to them. To many people, the higher the number the better they feel and the more self-worth they derive. Maybe the phrase should now be: he who dies with the highest klout score wins?

She has a point.

Orwellian? Sure. Unfair? Not in the slightest – It goes to everything I’ve said since day one – Want a better brand? ENGAGE. Want to be treated like a (I hate this term) rock star? BUILD A BETTER BRAND. Because now, you don’t have to shout “Don’t you know who I am?” Because for the first time, Marketers truly do.

What say you? Leave your comments below. And make sure you leave your Klout score. (Kidding.)

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http://www.CouchSurfingOri.com Couch Surfing Ori

I agree that engagement is everything. The more you engage, the better luck you have.

I think that the people that bitch and moan are the ones who don’t take the time to tweet and facebook, etc… But now that Klout is around, they will start, because they will not want to be left out.

I have a healthy Klout Score I’m told…. regardless of my score, I want to engage more.

Well written piece, good insights into Klout– a lot of people still aren’t sure of the uses of it, and I think you hit some of them on the head. Google itself is trying to measure what Klout is measuring, so… it should be a good battle soon.
http://twitter.com/devindigital Michael Sharp

Peter

I am in total agreement with you regard growth and importance of Klout but believe much of this will be attributed to brand self promotion rather than customer care. Brands will use Klout to identify the most influential in their space and target these individuals, offering them freebies and perks in return for some good press.

Brands will stake everything on the ‘positive’ influence these users excert over their ‘followers’ and on balance probably believe its more cost effective to look after them than attempt to address the concerns of everybody else.

So, I expect the biggest winners will be celebrities, top sports stars and high profile journalists. A few ‘ordinaires’ will find some benefit from Klout but I expect the status quo will remain, money will go to money.
http://www.goldendog.com bcotier

I enjoy being anonymous. I also appreciate the people who have invested the time and energy to get to know me. Some arbitrary number based on “klout”, Facebook friends or twitter followers is Bull s**t and fake. That is not engagement and I would resent it.
http://fundraisingcoach.com/ Marc A. Pitman, FundraisingCoach.com

54

Oh…you were kidding about the Klout score.

I see the value from a company perspective. What if 2 people sign up for your email list? You could just let them reach out to you. Or You could notice one has a higher Klout score and specifically customize their experience by reaching out yourself.

Very powerful stuff!
Jennifer

How about companies just treat everyone like they’re all 99′s? I think we’re all sick of being treated like crap.
http://www.twitter.com/john_jordan John Jordan

Great post. Definitely agree w/you on this.

Looking forward to hearing you speak on 11/9!
JBHosler

you only like it cuz you’re a ‘Celebrity’ in their eyes. ;-)
http://www.travelingwithmj.com Mary Jo

I hadn’t checked Klout scores recently so this article prompted me to go take a look. As I perused the analysis of several scores, I noted that there was no data charted since June. I’m not sure how much reliance I can place on an analysis using data that is 4 months old.
Just Curious

Glad you acknowledged the Orwellian aspects…as I’m sure you’re aware, citizens in Germany would likely find your conclusions and rationale both troubling and perhaps a bit naive. Though I suspect your being a) American and b) a proponent of corporate Calvinism, lends itself to seeing the profit / customer satisfaction applications as beneficial enough to offset the potential for more sinister applications of the capabilities companies like Klout introduce, it’s critical to take into account the unintended (and sometimes intented) consequences.

Not everyone is looking for an airline to use personal information to make them “whole” after a crappy flight. Even if it does afford a level of customer service and ‘understanding’ that may not have existed before (and clearly that’s a tenuous conclusion at best), what’s the hidden cost? Peter, interesting discussion you’ve raised…any thoughts on what that hidden cost might be?
http://shankman.com Peter Shankman

To Just Curious (who by going anonymous, brings a much closer rational argument to the Nazis than Klout ever could,) are you really comparing the actions of the Nazis to a startup in California?

I think that might be a stretch – Even for an anonymous poster.
http://FocusedWords.com Pamela Wright

If companies are using Social Media to measure their customers satisfaction and to react to dissatisfaction, do they really need to worry about an individual’s Klout score? Just saying……
http://doughaslam.com Doug Haslam

I had been wondering what is setting Kout apart and giving them traction, aside from the fact that I happen to like one of their folks (Greg Narain is an “old”- in social media relativity- friend).

We have seen lots of ranking and numbers and, while it’s fun to keep score (I dare anyone to say they don’t check these- liars!), we don’t necessarily get value from these, and the knee-jerk reaction is slowly becoming one of instant dismissal.

The one thing I take from this is… screw the number. The relevance is more germane to “influence,” if even that matters. So, thanks for sharing your talk with the Klout folks, and pointing out the possible real value of such a service.

The numbers, however, come with the territory. It’s up to us not to be stupid about it. I’m not convinced enough of us are past that bias yet, but let the smart people win by doing better work.
http://www.onebyonemedia.com Jim “Genuine” Turner

I fear the Klout user that wields it with power. The user that builds their Klout score to then use it for evil. We then get the “Do you know who I am?” types using this and the blogger that threatens a company saying , you don’t give me to my entitled freebies or give me what i want, I will use my Klout against you. We have seen this. If we empower customers, which is not necessarily a bad thing, we give them a power to abuse.
http://my168project.net Matches Malone

All I know is, having a great Klout score at one point got me some free coffee from Starbuck’s. I’m currently attempting to leverage my Klout to receive a free camera from Canon. Of the being able to shoot films cheaply variety. Tell your friends ;)
http://www.traackr.com Derek Skaletsky

good thoughts, Peter. I think the crux of your argument is the idea of one’s Relevance to a specific topic/conversation/area. One’s influence is contextual — meaning a person may be very influential when it comes to business travel, but not at all influential when it comes campaign finance reform. Therefore any measure of a person’s influence in social media must be filtered through a coefficient measuring his/her relevance to the topic.
http://www.groupable.com Michael Klausner

Peter,

So glad to hear your interest and understanding about these new scoring techniques. Your comparison to “penis envy” is quite apt. Knowing who my customer REALLY is, is truly nirvana for marketers. Now think about what Facebook just launched (or re-launched) for groups. Think about the power inherent in scoring groups of like-minded people and their influence as opposed to just one individual. The ball is rolling …
http://www.sigmabizblog.com Jamie Gorman

I’m a big proponent of Foursquare, especially for my small retail and restaurant clients. I love the added potential of Klout. If I understand correctly, it is something that could really enhance the “rewards program” aspect of location based apps. However, would the social media elite totally dominate the rankings, rendering it useless for smaller business. Also, business has to be careful to realize that there are plenty of great customers that won’t know anything about Klout – don’t leave them hanging (but look for ways to bring them in)
Thanks for the info.
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http://doughaslam.com Doug Haslam

@Jim Let us not forget the value of “bad actors” in social media, who exist to feed our blog posts and case studies. It’s a great Circle of Life.
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http://www.itmemos.com Travis Van

Ok, first time ever even checking out Klout – and I see that Chris Brogan and Brian Solis both supposedly have substantially more influence than Michael Arrington (founder of TechCrunch). Uh… yeeeeah.

Don’t personally know Brogan or Solis, and I’m sure they are indeed very influential. But is “clout” really about who dedicates the most time / energy to promoting themselves / their work on social media … or is it about people that move markets the most?
http://www.jdsavage.com Jeff Davis

So, according to this line of logic, someone like my mom, who wouldn’t know a tweet from canary, has to stand in line because someone else knows how to engage in social media.? That’s wrong.
http://www.timleffel.com Tim L.

Yeah but…how does Klout factor in offline media influence (TV, radio, print), or someone who speaks in front of 5,000 people at a keynote presentation every week or two but despises twitter and facebook? (I know a few of these people, and they’re hugely influential.) Or a reclusive author who only does interviews with important magazines? For a whole lot of people, life is more than what happens online.
Just Curious

Sorry, Peter. I wasn’t referencing Nazis when I spoke of Germans (not all Germans are Nazis afterall, yes?). Rather, I was referencing this recent article about a few hundred thousand Germans opting out of Google Street View…similar coverage also examined the prevalence of internet privacy education in Germany:

http://www.usatoday.com/tech/n.....many_N.htm
http://shankman.com Peter Shankman

Tim: I’d suggest that if people are “avoiding” FB or Twitter, they’re actually missing out, and come 24 months from now, won’t have a choice.

Secondly, If they’re speaking all the time, at the very least, let them have a Twitter account so they can say “Feel free to quote whatever I say here, my Twitter name is X – That in itself would improve a score, I believe, simply be being referenced.
Lucretia Pruitt

Great breakdown of why Klout is surging ahead so quickly amongst a slew of “social apps” Peter.
Like Jim though, I wonder how long before we start seeing the folks who figure out how to work the system and then use it to bully companies into preferential treatment.
After coming back from Las Vegas and the Klout party in conjunction there with Blogworld, I realized that my “style” of engagement isn’t really suited to the algorithm. While I have a decent enough score, it showed me that I am as eclectic in my posts on Twitter and Facebook as I am in real life. That is to say that I don’t focus much on any one topic – so from an outside perspective, it would seem that I’m not influential on any matter specifically. But I suspect those who are influenced by me would say that it is my approach to all matters (getting as much information as possible before forming an opinion) is what influences them, not the frequency of which I discuss a specific matter.
However, I expect that I will end up modifying my own actions online to reflect their algorithm rather than expect them to alter it to accommodate the ‘unusual’ behavior like mine.
SHowing that the folks at Klout have a strong impact on how we will engage in the future, I guess.
http://www.outofthebluedelivered.com Dawn Veselka

Peter, as a retail business owner I can truly appreciate the value of Klout.
You used an airline experience gone bad as an example because it’s what you know. Heck, you spend half your life in the air!

Looking at it from a retail business aspect, the value gets even clearer. (Not saying that airlines aren’t retail business, just “experience-based” not “tangible product-based”.)
YES, we strive to treat ALL customers equally and fairly with EXCEPTIONAL customer service. Still, mishaps and mistakes sometimes happen. We do right by ALL of our customers, not just the ones with the ability to tell the most people. That being said, I see the appeal of being able to not only “make it right” but perhaps “wow the right customer in the process” with the help of Klout.
It is estimated that bad news outnumbers good news in social media 200:1. Those numbers are staggering for retailers. We have to do everything we can to get our customers spreading good news about us and Klout can help us identify those with the loudest voices.
Diran Afarian

I think klout has a fairly good chance of success, just as most new concepts this one also falls to earth with a bang because I feel early adopters are fairly vocal and more so, optimistic. I rhino it stems from the need to be first in recognizing success and having bragging rights.

I feel it would be more useful and less threatening if the score wasn’t 65 or 89 or 23 and it was something like, influential, not relevant, average etc.

Just my 2 cents worth. Btw, anything fizzles when PR stops. MySpace anyone?

Diran Afarian
Diran Afarian

Although, I think klout has a fairly good chance of success, just as most new concepts this one also falls to earth with a bang because I feel early adopters are fairly vocal and more so, optimistic. I rhino it stems from the need to be first in recognizing success and having bragging rights.

I feel it would be more useful and less threatening if the score wasn’t 65 or 89 or 23 and it was something like, influential, not relevant, average etc.

Just my 2 cents worth. Btw, anything fizzles when PR stops. MySpace anyone?

Diran Afarian
Nic

It sounds like a great way for companies to rationalize their customer service. Whether to kiss the hand or the ass of a disgruntled customer or just ignore their complaints. And you know that ignoring them will be one of the options if the cost of such an action can be ascertained and measured against the benefit.
The right to good service will become a privilege of the few who count.
This makes me wonder whether or not a business will suffer the death of a thousand cuts when low Klout score people share information socially in a traditional sense, ie face to face.
It’s all very well to be a star who gets to move to the head of the line but the bypassed will notice over time. Will small businesses be able to utilize the power of Klout?
Will the growing number of locavores (of all kinds of goods and services) want to do business with a company who will treat them with the deference due their score or with someone who appreciates their custom and is happy to show it to all who darken their door?
http://inmedialog.com Alexandra Reid

There is a lot of talk going around recently about the benefits that Klout could lend businesses in their ability to grade potential customers. However, as engaging in social media becomes more important to businesses, I wonder the damage that Klout could create for those that fail to keep up with competitors in online engagement. Do businesses get a Klout score, and if so, do you think customers would grade a business based on its level of engagement?
http://www.screwcrew.com Andy Pels

Just let the Klout people have all of their algorithms tuned up for when it is better known and their scores wield more power. Then come those who will game the system.
In a way this is good, though, because it is the likes of spammers (Klammers?) who take away enough of the impact of ideas like this to cause us all to have our grains of salt at the ready. We won’t just accept *the number* as gospel since there will be those manipulating it. Instead it will become another tool to be used sensibly.
Paraphrasing Norm Abram, “Before we use any power tools, let’s take a moment to talk about safety. Be sure to read, understand, and follow all the safety rules that come with your power tools. Knowing how to use your power tools properly will greatly reduce the risk of personal injury.”
Mark Fithian

Peter. Great article. I’d nuance your second assumption, Point B. Marketers certainly want to know more about their customers, but the question is really one of relevance. There’s so much data out there available to marketers, but what’s the most active, most meaningful? I think that’s why a Klout score has so much appeal to marketers; it’s a great quantification / synthesis of “influence”. Super compelling. Mark
http://catelouie.tumblr.com Catherine H.

Great post! I definitely agree that Klout scores have value. However, I like Mary Jo have noticed that some user scores are not updated as frequently as others. I will say that what I have learned about my tweeting through my Klout score has caused me to rethink the way I tweet.
Sweet John

Great insight on the future of improving the customer experience. Your points on how this could affect Foursquare make complete sense! It will be interesting to see how businesses can tailor customer experience for both the fan and the casual.

Thanks again for doing what you do,

Sweet John
http://www.goldendog.com bcotier

What kool-aide did you drink?

“Tim: I’d suggest that if people are “avoiding” FB or Twitter, they’re actually missing out, and come 24 months from now, won’t have a choice.”

Missing out on what exactly? I would say less than half of my friends are on FB even fewer are on Twitter. I could easily do without both FB and Twitter.

As to getting freebies: Ever heard of frequent buyer’s cards? Come on, if your a regular some where then the staff had better know you. I don’t need foursquare or twitter to be greeted warmly at the stores I shop at regularly. If they do not take the time to get to know me then I can take my money somewhere else.

If you really do have real clout then you will get the sponsorships and products to test. I have been given products to test and use in exchange for my endorsement. It had nothing to do with some arbitrary social media “klout” score and everything to do with WOM.

Perfect example is Scuba diving girls are totally immersed in social media… But they don’t get proto-types or products given to them to test nor are they sponsored. They get demos.

I get products. When Otter gave me a dry suit worth $2900 in exchange for me using it. They got a photo of me posing by an iceberg from my Antarctic expedition for their web site. I was featured on the cover of a Korean diver magazine in their suit. Wearing it I have appeared in articles and videos in several languages and two books so far. Recently my photo in the suit was featured in a talk at EuroTek 2010 in front of the very folks who would spend the money for one of these suits. What Otter wanted and got was me wearing it in the FL cave diving community a market they had little penetration.

The social media diving girls don’t have that clout with manufactures. They have facebook followers and twitter fans but no clout. They are focused in the US not the world. It’s a big world out there off line.
http://shankman.com Peter Shankman

Sorry, but to say social media people don’t have any power is myopic, at best – You sound like those people who said, about 70 or so years ago, “Oh, please, why should I have to go on TV? I’ve got my radio voice, and that’s fine. People aren’t going to watch some little box in their living room!”

It’s not about Kool-aid, it’s about watching the trends – The amount of money currently being pumped into Marketing via social media continues to climb to astronomical proportions – You’re going to tell me that a company getting a mention by someone of influence online isn’t a boon to them? I’d recommend telling that to Chevy, Southwest, or Virgin, and see how quickly they laugh.

As we move towards a one-network society, where everyone you meet automatically becomes part of your network, and your influence and recommendations in turn drive them to shop and purchase and vice-versa, it’s just a question of time.

We’ve seen what’s happened to those who dismiss history…
http://erichurst.com Eric Hurst

Denise Richards is a “Thought Leader”?
http://www.lemd.com S Seacord

While I totally agree with focusing on customers’ needs, what ever happened to asking? Give me the wine store owner who ASKS me what I like over the one who — creepily — greets me with “Oh Stephanie! Let me show you the Cab I just got in.” I don’t go around wearing a nametag. I prefer to be in charge of the amont of personal information that forms a conversation at any given time. And as a veteran of the early days of frequent guest programs when we were constantly debating when ‘personalization’ became ‘invasion of privacy.’

That said, my media relations efforts are built on figuring out who the new players are — how to contact the freelancers who are off-masthead. Reading other stuff they wrote to figure out how to make a fit for my clients in future assignments they might have (or suggest). And of course I do that with online searches. And I find that — as long as I’m on target — they appreciate the compliment on something they’re written and often continue the dialogue. It sounds like that’s what Klout aims to do. Like any other social media, if the message directed at me is off-target, I’ll simply hit ‘delete.’
http://www.olinhyde.com Olin Hyde

Klout might be the first app that is a mass market semantic technology. The Orwellian aspects are totally acceptable given that: 1) anyone can build Klout, and 2) Klout will help develop social media with greater relevance and trust built on legitimate authority. It is excessively difficult to cheat your way to a high Klout score.
http://www.b2cy.com Chris Eh Young

So how long until people learn to game the system? You see it with Foursquare now and I imagine people are already formulating strategies to increase their Klout scores. Create multiple accounts to feed the main account’s numbers. I have already seen it happen.

I understand that there is much more to the score than RTs and @Replies but there those trying to pad their numbers.

I do agree with the post whole-heartedly, it’s bang on.
http://blogs.blackberry.com Douglas ‘tron’ Soltys

Very insightful article. Turing data mining into a tool for self-promotion and self awareness (was interesting looking at my Klout report and see that I’m a ‘Specialist’) is a win-win.

As to your comments on foursquare… Application is still fun (badges!) and useful (where have I been spending all my time recently?), but Klout should see it as a serious potential partner. Foursquare/Twitter/FB are the channels through which the rich data that Klout mines is delivered, and each provide different pieces of information which need to be overlaid for a holistic view. Your Mayor status/which badges you have should contribute in some way to your Klout ranking.

Cheers,
Douglas ‘tron’ Soltys
@tron / @BlackBerry / @BlackBerryBlog
http://blogs.blackberry.com
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http://jetlib.com/news/ Jarvis Mysyplane

Nicely stated, Peter. Thanks for the informative article!
http://www.makeovermedia.com Linda Arroz

I checked Klout out a couple of weeks ago after a blogger and editor I interact with posted a link. I’m not sure Klout is good for all companies or for all persons. A public score could affect what new and potential clients think or misinterpret the firm’s expertise or effectiveness. Tweeting and facebook outreach are not the only way to promote and interact with friends, fans and clients, and for many entrepreneurs, it’s hard to maintain and engage enough to become “relevant” enough in Klout’s algorithmic method of analysis. Also, beware, Klout’s pages are public.
http://zgrouppr.wordpress.com/ Jules Zunich

Of course, I had to check my Klout score (42). I have no idea what that means, still, after reading the overview, but something about being a focused, consistent activist. Hopefully someone finds that meaningful and I can get a free cup of coffee.

What I love about this post and all of the comments (strange and on-point) is that everyone is right: Klout will change how we are marketed to (at least for a while) and yet it won’t even matter to most people. The mom waiting in line will have no idea that she did not get upgraded coffee and logging into Twitter will not be worth the effort to her if somehow she finds out. The bratty celebri-Tweeter will get more perks, but many will have already tuned that person out, creating a false sphere of influence.

Really, what businesses need to be tracking is not just what is pushed out (and the urge to control it), but the buying decisions / actions that are a result of that. Just because someone is followed, doesn’t mean they are listened to. Just because I hate XYZ company and vent about them, doesn’t mean those that follow me will stop using them.

Two questions:

1. Can we vote on which “darlings” get put “right the hell out of business?” It is not that I want to see them fail, but any person or company that is relying so heavily on this all-that-glitters-is-gold approach to social media might not have what it takes, or even deserve to be, in business. The most “influential” people online are often my least favorite to follow.

2. Peter: Is Klout a client (or potential)? I noticed that you didn’t mention the nature of your relationship with them. I find that our views are often guided by our vantage point.

Best post today. Thanks!
~ Jules
http://www.webbedinkinc.com Tia

I think your assessment is right on and that Klout and the way it gathers information about people via Twitter is a potential information goldmine for companies.

I question Twitter’s acceptance and usage among consumers who are NOT in any way associated with social media as a career or job function (or are not celebrities). I know they exist, I just question how many of those users can actually be considered influential.
http://www.prowrite-pr.com Christel Hall

Peter, et al – I absolutely do see the value in Klout from the standpoint of it’s always value to know more about your customer/prospect and their needs/wants.

Very important though to make the distinction that the information should be used to help the customer at hand, not to ignore the customer with less klout. What if the customer with less ‘historical’ klout decided that morning to make a major investment in your product/service and you incorrectly put them ‘lower on the totem pole’ of service?
http://www.americansahara.com/about/ J. Brandon

Businesses have loyalty programs. Good customers recommend businesses to friends and neighbors, so they get treated better, get discounts, thank you gifts, and other perks. This is nothing new.

Klout just gives a business another tool to define “good customer.” To recognize those people who will spread their message, tell, their story, and ultimately, put cash in the register.

It’s not an excuse to treat anyone poorly. It’s a way to find out who might evangelize your cause.
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http://redheadwriting.com Erika Napoletano

After trolling through the comments to ensure I wasn’t regurgitating some previously explored concepts, I’ll throw these softballs over the fence:

1) OMFG – are you serious? Some of you are “afraid” of the Klout Rage of 2010? People using their Klout scores for ill gain and dick measuring contests? Please. Dbags exists in every facet of the human machine, whether they have a Klout score or drive a leased car that puts forward the intended perception. I’m not scared of Klout. I’m scared of spiders. They’re freaky.

2) DATA – I’ve always been taught to take number with a grain of salt. They’re guidelines and places to start conversations and explore strategies. Definitive? If it’s your t-cell count and your facing cancer, perhaps. Google Analytics telling me (roughly) how many hits my site got last month? Jim Dandy. A measure of Absolute Universal Power and Influence? Only in Marvel Comics publications.

3) SUITABILITY – You’re right. Klout’s algorithms aren’t going to suit everyone’s engagement style. So go check out PeerIndex, TweetReach and your Facebook fan page stats. Talk to Spiral16, HubSpot and Radian6. Criminy. It’s as if you folks are deluded into thinking that using Google Analytics for tracking your web stats ALONE is enough. Tsk tsk.

As a follower of Klout, I’ll say this: their algorithms need work and my personal data shows I’m influenced by folks I haven’t had conversations with in months. They’re young but making inroads and will love this crowdsourced feedback that empowers them to build a better product. But as with any product, understand its capabilities, limitations and the fact that it’s built on theory…and see how that product best relates (or doesn’t at all) with your or your clients’ needs as we traipse through the social mediasphere.

Ciao!
http://simpleeserene.com Lee Horbachewski

I have been studying the benefits of Klout and am beginning to understand the methodology behind it.

Thank you for this informative post, it really sheds some more light for me.

Personally I like to authentically connect with people on Facebook & Twitter, therefore I don’t use schedule tweets or posts, and make every effort to reply to all posts at my earliest convenience.

I have been using Klout to support me in choosing quality people to follow.

Thanks again for another informative post.
Lee
http://www.linkedmediagroup.com Lee Traupel

Peter,

I agree with you in that Klout can be utilized as a wonderful tool by advertisers, merchants and others to “weigh” the value of a potential or existing customer.

But, as others have pointed out, there is an implicit assumption made that a consumer’s score is determined by their usage and immersion in social media.

We are still early in the curve on the latter so one of Klout’s challenges is finding market segments that “fit” early adopter profiles while the market catches up to them. And/or it may be important for them to target market demographics where the users in this community (high tech, software services, etc.) or location (San Francisco, NYC, Seattle) are actively engaging with and utilizing Social Media.
Blake Lewis

Can’t argue any of the metrics-based comment, though I feel that a key question remains. Could Klout mean the end of doing the right thing?

If I’m a low-scoring social media participant and I miss my father’s funeral because of a poor airline experience — sorry to keep piling on one industry!! — is that any less important than a high-scoring passenger missing a racquetball tournament? Is the hurt or damage deeper? What if I’m a travel planner who doesn’t spend time on Facebook… would that matter? Would Jimmy Carter or George H.W. Bush get lesser treatment, as I suspect they don’t spend much time tweeting.

I could see a backlash campaign, kind of like Southwest Airlines and the “bags fly free” in response to other airlines’ bag charge policies… ala, “we take care of you, Klout or not!”
chouwalker

Peter, you wrote “Who doesn’t want to be greeted personally, the second they walk into a hotel, bypassing the 100 poor suckers waiting on line?” Well, obviously we all do. But if Klout’s “poor sucker” to beneficiary ratio is really 100 to 1, and it creates 100 losers for every winner it creates, then I have concerns about it being a “service” that creates too many poor suckers. If it used as tool to boost service for an elite group at the expense of service to the masses, then it is a net loss to society. I hope it is not used as another means to increase disparity and social segmentation.
http://www.SterlingHope.com Amber Cleveland

I refer to klout once a week to see if I am “trending” in the right direction. It isn’t the only indicator that I look at, but it is one of them. I think that it is important to have benchmarks and metrics…at least you will know if you are headed in the proper direction.

Also, I hope the people with higher scores don’t use it to bully, but I do think it’s ok if they nudge a company in the right direction to improve customer service for everyone. That is the advantage to social media – amplification of issues and correction of issues. It isn’t too difficult to see when someone is trying to wield perceived power, so for those thinking of abusing the system, I’m sure the system will shut them down at a point. People will stop listening to those who are only screaming. I also hope that social media, in general, will encourage companies to do the right thing for their customers period, whether they have “klout” or not. By the way…special note for companies…the person who makes the initial complaint may not have klout, but someone who is listening might. Be fair, be aware, and be willing to make changes.

Thanks for a great post!
http://chuckreynolds.us Chuck Reynolds

any klout metric and what anybody has ever used to calculate influence has always been bullshit. Anybody who talks about it as how badass they are because they have a few more points of ‘klout’ than me… I couldn’t give a shit.
It’s the whole numbers talk and how you said “number of twitter followers is the new penis envy” – it totally is and so is klout
http://kerryregoconsulting.blogspot.com/2010/10/are-you-cool-enough-to-get-service.html Kerry Rego

It makes me uncomfortable thinking about those that don’t use social media and the customer experiences they’ll be getting. It’s classism of internet services. I understand the marketers desire to dissect their customers but what of the customers themselves? You won’t be seen if you don’t have a number. I think this person will become invisible and that’s not the kind of marketing I want to do.
http://digitalinfluentia.co.uk xavier izaguirre

I think Klout is on the way to success on social influence tracking.

But while popularity may be key in low investment, fast consumption products it may not be so useful in high cost products, highly informational markets, or reputation damaged companies. Mashable has a massive Klout, did it do any good promoting Google Buzz?

Klout is on the way…and is very hot, but hasn’t got the ultimate truth
http://dadarocks.com DaDa Rocks!

I think klout is great – I agree with Genuine that it’ll increase a users ability to WAH the loudest… as with any metric tool there needs to be a good balance of user ship and really its just another tool to really gauge just how interactive you are in a space.
http://@melthel Melissa Thelemaque

I am a big fan of Klout, generally.
I am a bigger fan of Klout scores, specifically, because they guide my decisions about who I should follow and follow-back.

I think that the enterprise uses you described are all feasible. If these things happen, I’d hope that Klout would give me the opportunity to exercise some control over the information they share with businesses. (But seeing the current trend, i.e., sell it all first, apologize second, that’s unlikely!)

I generally focus on my personal use (which influences my business use) of Klout. I find that Klout scores are useful guides in determining who to follow, who to mention, who to re-tweet. I know that numbers aren’t everything. I definitely follow people or organizations just because they interest me. There are some straight-up idiots out there with high Klout scores. I get it. It’s not perfect, but it’s fruitful.
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JJ

Sounds quite nefarious. The more that is known about the individual customers that comprise the customer base, the more that marketing and corporate pr campaigns can be tailored to individuals to maximize pricing and revenue from each customer. Stated differently, information is power and if the marketers have more and better information they will use it to fleece us more effectively so as to maximize sales and revenue. It’s information is power multiplied by divide and conquer. So, collectively it is in our interest to shield our spending and other habits and our on-line activities as much as possible, and to seek better data privacy legislation as achieved by population of Europe.
http://wordsdonewrite.blogspot.com Amber Avines

Thanks for spelling this all out so clearly for folks, Peter. Great examples that will hopefully get people to understand the power of Klout much better.

I do, however, have mixed feelings about the Facebook integration. I’m seeing lots of people have the scores jump big time simply because they’re Facebook addicts. They are not influencers; they are not shaping opinions or spurring actions. They are just people with big families or those who have reconnected with high school buddies. Twitter is by far more effective at measuring influence in my book.

Oh, and hey, based on my respectable Klout score of 62 and the fact that “According to @Klout, @wordsdonewrite is most influential about Writing, Blogging, social media, Journalism, and Los Angeles”, you should most definitely be sending me advanced copies of your books to review (hint, hint). :->

Thanks again for the good post. I’ll be referring people to it when they need schooling on Klout!

Amber @wordsdonewrite
http://www.markshaw.biz Mark Shaw

Hi Peter.. and great and thoughtful article..I am a firm advocate of Klout as I have been using it for some time. I am always interested in metrics that actually are useful and have value… I have a position with Twitter is that its all about listening, engaging, adding value, being personal and so on… what I like about Klout, is that the more of that I do…. the more my score has increased….

Surely as well it can be a great resource for businesses. It must make sense for businesses to look out for those peeps on Klout that have higher scores as they by default will be more influencial when they make comments etc…

Mark
http://zgrouppr.wordpress.com/ Jules Zunich

This is odd: My Klout score had been the same for 6 months it said, then today (after my post) it went down 10 points. I need some serious verification of the analytics behind Klout.
http://my168project.net Matches Malone

It’s dynamic now, as it’s hooked into Twitter. It should change on a daily basis depending on how or why you tweet…
http://my168project.net Matches Malone

@Eric Hurst: That was my reaction as well.

PS, where’s my gravatar image?
Max R.

Taken to the next level, in the same way that websites incentive-ize you to get your friends to join up or use the service, etc. Early adopters could garner a higher Klout score by seeing who and how many in their network followed them in.

Fascinating article.
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http://twitter.com/kartek Kartek

I had always thought there will be a time when the likes of Klout will be become very important more in the cases of crisis management as you mentioned. But sometimes don’t u think its unfair that a person would be treated better or compensated better based on his Soc media Influence or Klout score.

What if airlines did start offering fars based on ur Klout score(that is too much of a stretch), but well what if they do something like that when The shankmans, Cash more’s and Solis enjoy the freebies and literally fly for free vis a vis lesser mortals.

Interesting? scary? Unrealistic?
http://www.dadstalking.com Jim “Genuine” Turner

At Dads Talking Radio we had a chance to interview Megan Berry, Director of Marketing, for Klout.

http://www.wsradio.com/interne.....-Show.html

We will be doing some follow up with this but I think this is just the beginning of what we will see in apps like Klout.
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Life is a competition.Klout is using various algorithms to determine your relevant worth in the online world.I looked at the site and it mentions twitter but not li.I wonder if you have twitter,which links with li, you can merge them somehow by forwarding them.

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