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20/10/2011 / loyaltymarketingnews

Klout Updates The Way It Judges Your Social Influence

Probably the section in PSFK’s recent Future of Retail report is the trend of ‘Social Currency’. In this section we talk about how brands, retailers and hospitality companies are reconsidering the way they value shoppers thanks to tools like Klout and Kred. These services look at people’s social influence by looking at how their tweets or Facebook updates get shared and commented upon. The idea here is that a brand can change they way it acts around a customer if they know they have a large social megaphone shaped like a phone in their pocket.

Klout says that it’s now working with 3,500 companies to offer to members with the right score aspects such as special perks, better customer service and reward loyalty. After several months of development, the San Francisco based service will be updating the way it judges people and this update points to the way to how the tracking of social influence  will evolve. In an announcement on their blog, founder Joe Fernandez explains the new breakdown on how they will judge people:

People Rank
We’ve often thought of what we’re doing as a form of PeopleRank and this is a giant step in that direction. We’ve improved the stability and accuracy of our scores. Furthermore, our subscores have always been an important part of Klout. This update will make them more clear and make changes easier to understand.

True Reach
True Reach is the number of people you influence. It is a real number of people we find by looking at the impact you have on your connections. We analyze over two and a half billion connections and pieces of content every day in order to accurately gauge who is in your true reach.

Amplification is how much you influence these people. We analyze how many people in your potential audience act upon your content. We take this a step further and understand what an influence signal means in the context of that person. For instance, if I rarely like or comment on anyone’s posts, but choose to do so to yours, that is more meaningful than if I like 60 posts a day. Amplification indicates the effect you have on your audience.

Network Impact
Network Impact is the influence of your audience. This is on a 1 to 100 scale and indicates the influence level of people who engage with your content. It’s not just about how many people you reach, it’s about getting your message to the right people. Having more connections won’t help your Network Impact, but having influential connections will.

Accuracy & Transparency
The subscores contribute to one overall score, the Klout Score. We’ve always been transparent about the various activities that could impact your Klout Score but we now have the power to share the specific actions that are helping or hurting your score. When your Klout Score changes you will be able to match it to a corresponding change in one of these subscores and understand why the change has occurred. If your Score goes up because more top influencers are acting upon your content, we will share that with you.

Influence is the Ability to Drive Action
The core premise behind our algorithms has always been that influence is the ability to drive action. We have tightened this concept even further in this release. You are not more influential because you tweet or use Facebook more, you are influential because you have an influential audience engaging with your content.

Fernandez – who spoke recently at PSFK’s conference in San Francisco – says that this update will roll out next weel and that the core premise behind the new algorithms is that influence is the ability to drive action. He says:

“You are not more influential because you tweet or use Facebook more, you are influential because you have an influential audience engaging with your content.”


(via PSFK)

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