& cplSiteName &

Klout Scores $200M in Lithium Buy

Sarah Thomas
4/1/2014
50%
50%

Just when you thought it was OK to ignore that score of influence assigned to your social media presence, Klout, the company behind the scoring system, is being acquired by Lithium Technologies for a hefty sum.

The companies announced the acquisition last week, and, while terms were not announced, Fortune suggests the deal is worth $200 million. So why is Lithium Technologies, an enterprise customer experience management company, interested in a social scoring startup?

The answer is pretty simple and goes back to what we -- sparked by news from Amdocs Ltd. (NYSE: DOX) -- discussed at Light Reading last fall: Your social clout matters because it is one way operators will judge your "importance" as a customer. It can affect the speed of response you get, the level of customer service, and the offers made to you. It's not about you; it's about your network and your ability to reach them. (See Why Your Klout Score Really Matters.)

Lithium describes Klout as "the pioneer in using big data to measure online expertise." It assigns a score to all its members based on a number of factors that determine their "social influence," including their reach, level of interactivity, and quality of content. It also has a Klout for Enterprise platform to connect brands with these "influencers."

That's what sparked Lithium's interest. The company's customers include Spotify , Skype, and Sephora, but the concept is just as applicable to telecom service providers that want to improve their reputation through customer experience management. That's what Amdocs was pitching back in October, showing off a proof-of-concept of its Proactive Care data analytics combined with social media insights. Keeping track of a person's online presence is a way to reduce customer care costs, improve the customer experience, and spread goodwill for the brand.

Of course, the opposite can also happen, which is why it's important to understand how to properly make digital part of the entire customer view. Either way, the acquisition is proof there's more to social media than cat videos and food pics. Klout is giving service providers 200 million reasons they should pay attention.

— Sarah Reedy, Senior Editor, Light Reading

(9)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
4/4/2014 | 7:35:59 PM
Re: Keeping score
Klout doesn't measure anything meaningful at all. If it did, I wouldn't be getting special offers for hair care products and McDonald's. I haven't eaten at McDonald's in years and hair care products do me no good unless you can send them back in time to 2001. 

Visiting Klout, I see that it now seems to have pivoted to some kind content portal. It's showing me links to articles on the home page. 

My Klout score is 70, btw. 
Sarah Thomas
50%
50%
Sarah Thomas,
User Rank: Blogger
4/1/2014 | 3:21:34 PM
Re: Keeping score
That's not true! Your Tweets are probably more valuable than mine. I complain about the weather a lot. Plus, you can choose which social networks you tie in. I'm sure the more you include, the higher your score. i only let them access my Twitter.
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
4/1/2014 | 2:20:45 PM
Re: Keeping score
Hmm, Sarah, my Klout score came up ...to 54. Hard to believe I am on social media par with you. Something's fishy. 
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
4/1/2014 | 2:18:56 PM
Re: Keeping score
Is that what they are calling Bruce Jenner these days?
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
4/1/2014 | 12:57:15 PM
Re: Keeping score
I'm within striking distance of Zeppo Kardashian.
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
4/1/2014 | 12:37:16 PM
Re: Keeping score
Not quite a Kardashian. Seven
Sarah Thomas
50%
50%
Sarah Thomas,
User Rank: Blogger
4/1/2014 | 11:39:08 AM
Re: Keeping score
I doubt that. Those 56 Twitter followers have to count for something.
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
4/1/2014 | 11:37:18 AM
Re: Keeping score
My score remains unchanged.
Sarah Thomas
50%
50%
Sarah Thomas,
User Rank: Blogger
4/1/2014 | 11:17:29 AM
Keeping score
Just checked my Klout score, and it's fallen 2 points to 54 since I last wrote about Klout. I'll need to work on that! Between them, the companies have more than 300 brands as customers, so you never know who will be keeping tabs on that score now.
More Blogs from Que Sera Sarah
Tech and media companies are still worst performers in diversity at the executive level, and their female representation is far below what the pipeline suggests it could be, McKinsey finds in its latest diversity report.
Join Sigma Systems CTO Catherine Michel on January 11 for an inside look at transforming your network, operations and company culture to compete in the digital era.
Join Women in Comms on Nov. 1 in London for a luncheon geared towards men and how they can be important allies for women in the workplace.
The results of Women in Comms' first survey are in, and they show that the more things change, the more they stay the same (among many other things!).
Join WiC for its fourth networking breakfast in Denver on Thursday, Sept. 28, where we'll come together to discuss why the future is brighter than ever for women in tech.
Featured Video
From The Founder
Light Reading founder Steve Saunders grills Cisco's Roland Acra on how he's bringing automation to life inside the data center.
Flash Poll
Upcoming Live Events
March 20-22, 2018, Denver Marriott Tech Center
March 22, 2018, Denver, Colorado | Denver Marriott Tech Center
March 28, 2018, Kansas City Convention Center
April 4, 2018, The Westin Dallas Downtown, Dallas
April 9, 2018, Las Vegas Convention Center
May 14-16, 2018, Austin Convention Center
September 25-27, 2018, Denver, Colorado
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
Net Neutrality Moves Are as Futile as Trump's Comb-Over
Iain Morris, News Editor, 1/18/2018
Samsung Plots New 5G Modem – Report
Dan Jones, Mobile Editor, 1/18/2018
Europe Urges US to Block Trump on Net Neutrality
Iain Morris, News Editor, 1/22/2018
Last Look – CES 2018 Spectacular, in Photos
Mari Silbey, Senior Editor, Cable/Video, 1/22/2018
Has the 5G Upturn Begun?
Iain Morris, News Editor, 1/19/2018
Animals with Phones
I May Have an Appointment Available Later Today... Click Here
Let me check my schedule.
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed