Klout is a social media analytics company that measures users' online social influence through a Klout Score ranging from 1 to 100. It considers the size of a user's engaged network and how others interact with their content. Klout benefits companies by allowing them to target influential users with perks campaigns promoting products or services. Having influential social media users spread branded content through perks campaigns provides brands with effective earned media that leads to increased engagement.
2. What is Klout?
Klout uses social media analytics to rank its users according to online social
influence via the "Klout Score", which is a numerical value between 1 and 100
It measures the size of a user's social media network and correlates the
content created to measure how other users interact with that content
Three nominally more specific measures-
"true reach“ - the size of a user's engaged audience who actively engage in the
user's messages
"amplification“ - likelihood that one's messages will generate actions, such as
retweets, mentions, likes and comments
"network impact” - computed influence value of a person's engaged audience
4. Klout: In timeline
2008: Klout launched by Joe Fernandez and Binh Tran
September 2011: Klout integrates with Google+.
October 2011: Klout changes its scoring algorithm lowering many scores and
creating complaints.
May 2012: Klout announces growth of 2000 new partners over a one year period.
September 2012: Microsoft announces a strategic investment in Klout for an
undisclosed sum.
March 28, 2013: Klout announces inclusion of Instagram analytics in factoring Klout
scores.
May 13, 2013: Klout users had claimed more than 1 million Perks across over 400
campaigns.
March 27, 2014: Lithium Technologies acquired Klout for $200 million
6. How can it benefit corporates?
Companies pay Klout for Perks campaigns, in which a company offers free
services or products to Klout users who match a pre-defined set of criteria
including their scores, topics, and geographic locations.
e.g. HP laptops campaign
Reach to expert customers or influencers in a field
Recruitment esp. for sales and marketing role
Identifying influential customers in hotel industry and similar services industry
Finding key note speakers for business conferences
7. Top 5 Klout perks of 2014
Red Bull/Destiny: 20 Perks, Reaches Millions
Moe’s Southwest Grill: Happy Cinco de Moe’s!
Call of Duty: Advanced Social Power
Fair Trade USA: Celebrating October Fair Trade Month
Hulu: A Sneak Peek Perk Into East Los High
Source: blog.klout.com/2014/12/top-5-klout-perks-2014/
9. Earned media and ROI
92% of the people trust their peers and it’s had a major impact
Earned media provides 4x the brand lift of paid ads.
4x Retweets on content from Klout influencers
2x Clicks from content produced by Klout influencers
2x Time on site for people referred by Klout influencers