& 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
Congratulations to AT&T's Anne Chow, CableLab's Dr. Jennifer Andreoli-Fang and Movandi's Maryam Rofougaran, our 2018 WiC Leading Lights winners.
Heavy hitters in cable, open source and optical networking make up the five women who are shortlisted for the Hedy Lamarr-inspired Female Tech Pioneer of the Year category.
Four worthy women from the worlds of cable, the enterprise, data centers and B/OSS make our shortlist for the year's Most Inspiring Woman in Comms.
Libelium and Movandi and their founders are pioneering new technologies that are already changing the game for IoT and 5G, respectively, making them startups you want to keep an eye on in 2018 and beyond.
Ten worthy women and two trailblazing startups made the shortlist this year for Women in Comms' Leading Lights awards. Winners will be unveiled soon at BCE.
Featured Video
From The Founder
John Chambers is still as passionate about business and innovation as he ever was at Cisco, finds Steve Saunders.
Flash Poll
Upcoming Live Events
June 26, 2018, Nice, France
September 12, 2018, Los Angeles, CA
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
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
The Telco Debt Binge May End Badly
Scott Raynovich, Founder and Principal Analyst, Futuriom, 6/15/2018
Larry Ellison Laughed at the Cloud, Now the Cloud Is Laughing Back
Mitch Wagner, Executive Editor, Light Reading, 6/20/2018
Source Packet Routing Gets Real in 2018
Sterling Perrin, Principal Analyst, Heavy Reading, 6/15/2018
Mavenir's Billion-Dollar Blueprint
Ray Le Maistre, Editor-in-Chief, 6/18/2018
Colt Invests in US Network, Bigs Up Its Global Appeal
Ray Le Maistre, Editor-in-Chief, 6/19/2018
Animals with Phones
Backing Up Your Work Is Crucial Click Here
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