Light Reading
Social enterprise vendor Lithium snaps up Klout to add its social influence scoring system to its arsenal of customer experience management tools.

Klout Scores $200M in Lithium Buy

Sarah Reedy
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
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. 
SarahReedy
50%
50%
SarahReedy,
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
SarahReedy
50%
50%
SarahReedy,
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.
SarahReedy
50%
50%
SarahReedy,
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 Light Reedy
After years of sitting on the sidelines, Microsoft has pledged to support WebRTC -- formerly thought of as a Skype competitor -- in Internet Explorer.
Despite the launch of its new Passport smartphone, BlackBerry needs to embrace a future that's in M2M, messaging and enterprise services.
Vodafone's Dr. Alan Law talks to Light Reading about virtualization, backhaul, SON and more after being appointed chairman of the Small Cell Forum.
Wireless operators are jumping on the mobile music bandwagon, a move that sounds good for many reasons.
The worlds of tennis, fashion and wearables collide as Ralph Lauren and OMsignal turn a polo into a sensor to track your every movement.
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With YuLiao

10|30|14   |   6:27   |   (0) comments


Yu Liao, chairman of the Chinese Association for Renewable Energy in Germany, discusses the role that ICT solutions play in helping to grow renewable energy resources in Germany.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview

10|30|14   |   2:54   |   (0) comments


Sifang has been working with Huawei on several projects. JingTao Wu, Assistant President of Beijing Sifang Automation Co. Ltd., believes that the cooperation with Huawei can facilitate Sifang's process of internationalization.
LRTV Huawei Video Resource Center
A Better Connected Smart Grid: Powering Laos

10|30|14   |   5:38   |   (0) comments


Representatives of Electricite Du Laos (EDL), a state-owned corporation, discuss the importance of ICT solutions in serving their country's energy needs.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Junwei Lu

10|30|14   |   4:50   |   (0) comments


Professor Junwei Lu of Griffith University Australia describes his work with micro grid technology and the future of the power industry.
LRTV Documentaries
The Next-Gen Network Disconnect

10|29|14   |   01:23   |   (0) comments


There's a lot of talk about making networks more simple with SDN, NFV and next-gen broadband technology – but what about the complexity of introducing such capabilities?
LRTV Custom TV
Grow Your VPN Service Revenue

10|27|14   |   4:00   |   (0) comments


Watch how CSP product managers can better differentiate and maximize the value of their Internet, VPN and cloud services for business services customers, by adding premium application performance visibility to their data services.
LRTV Huawei Video Resource Center
Add SmartSense to Make Your Network Ready for 4K

10|27|14   |   3:23   |   (0) comments


To make current networks ready for the coming 4K TV challenges, Huawei SmartSense solution will conveniently add experience and operation capabilities to boost telcos' future business.
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
Like Us on Facebook
Twitter Feed