I was inspired to do another post on social influence measurement  after seeing klout get trashed on a few sites.  I understand why people  argue against it, but I think it’s helpful to look at it from all  sides.  The post ran long so I’m running in a series: The Good, the Bad  and the Ugly. Starting with…
The Good
Before we get  into it, let’s set up what we mean by “social  influence”.  I’m using  the definition Forrester analyst Zack N.  Hofer-Shall suggested:
“The power individuals have over your brand based on the size and quality of their networks.â€
Of course social influence vendors don’t publish their algorithms, but klout does provide clues on how it derives its score:
[important]klout score is comprised of: True Reach, Amplification, Network Influence[/important]
- True Reach = the number of people someone influences
 
- Amplification = how much you influence people
 
- Network Influence = the influence of the people in your True Reach
 
Intuitively, this equation feels right. Doesn’t it?
In  general, measurement is good! Metrics provide transparency and allow  for meaningful, quantitative analysis and discussion. Yes, numbers can  be used to distort  the truth, but I don’t believe the social

Believe it or not, Blondie (Clint's character) was "The Good"
 
influence vendors have an  agenda other than to build a sustainable business model. (They aren’t  trying to get anyone elected.) As long as the algorithms are applied  evenly across social media, they provide useful data and insights.
 
 
Erica Ayotte (@inthekisser),  a Social Media Manager at Constant Contact, pointed out that even if  Marketers can agree on who is  influential, what do you do with them  after you’ve identified them? Well, klout has an answer for that too.  Social influence measurement is about more than keeping score.  For example, klout has a perks program that allows marketers to reach  influencers and offer them exclusive packages with the intent of  supporting a Word Of Mouth campaign.
[important]See a list of current perks and claim those you qualify for <here>[/important]
Sure  there is plenty not to like about these metrics, but social measurement  vendors (klout, PeerIndex, Empire Avenue, etc) are still new and they  continue to improve their services. For example, klout, who gets the  lions share of attention, keeps adding services and features. klout uses  its algorithm to measure influence on 12 social media networks. It  currently has a new feature called “Topics” in beta. Topics provides  users the ability to see the top ten influencers on a given topic.
Okay, social influence measure not perfect, but as Voltaire said “the perfect is the enemy of the good.”
The Bad
Let’s keep it simple, here are 4 things that are bad about measuring social influence:
- A high influence score doesn’t necessarily mean this person is actually influential.  A high klout score would indicate an individual has a larger audience  of influential people that engage with the content being shared. But  does this measured influence cause action? Does a high score mean that  person can help a brand move more product? Not necessarily. There are  other factors that come into place like product/service accessibility,  location, suitability and personal taste.
 
- Klout lacks context – you may have a klout score of 70, but that  doesn’t mean you know  jack about sewing, mountain bikes, grilling, scrap  booking, etc. This  leaves the scoring system pretty empty – you need other data to provide  context be it (demographics, behaviors, etc.) However, klout is in beta  with Topics. If it works the  way one would hope, this will be a huge  improvement in the system since  it proves context. I may have a score  of 70 on the Boston Bruins, but a  score of 1 on dating Gisele Bunchen.  For what it’s worth, PeerIndex also provides some context by measuring  influence on eight industries.
 
- Some people fault social  measurement scoring because it can’t t measure offline influence. I  think that’s a specious argument. If you’re already tracking offline  influence good for you. Consider their digital score additive to your  assessment. But admittedly, using the definition offered, the solutions  available do not measuring online influence.  That’s  bad because marketers can become overly focused on a digital score and  totally miss the point of social influence.
 
- Vacation – if I go quiet for a week, my score drops ~5 points. Did I suddenly become less important?
 
I think this list may be too short, let me know why you think social influence measurement is bad in the comments.
The Ugly
I’m calling two things “ugly”:
- What if influence doesn’t matter?
 
- Data privacy
 
Influence doesn’t matter?
A Fast Company article, Is the Tipping Point Toast? explores the research of Duncan Watt.  Watt ran computer simulations to  determine how things (viruses, ideas) are spread. It’s not that  influence doesn’t matter, it’s that influence doesn’t matter as much as  we think it does. Watt’s said:
All the clever (and lucrative!) targeted viral campaigning may ultimately be less effective than good old mass marketing.
Here are Watt’s reasons:
- No  one can clearly explain how an influencer actually influences. Is it  one discussion? Several discussions? A mix of activities? Is an  influencer so influential that they mobilize the influenced to

Duncan Watt
 
also be a  strong brand advocate?
 
- Societal readiness is  the determinate factor regarding whether or not an idea spreads. He uses  the example of forest fires. There are thousands of forest fires a  year, but only a few become roaring monsters. A specific mix of  environmental factors are required for a hugeforest fire: dry woods,  lack of rain, distant fire departments, etc. Intuitively, this makes  sense. Cultural factors play a part in how “right” ideas are for a  community.
 
- Marketers like the idea of influence because it exudes a measure of control. (and that control can be sold to clients.)
 
Data Privacy
I’m  a cup is half-full type of guy coupled with some good old conspiracy  theorist. When I learned of klout, it could only measure two or three  social networks: twitter, LinkedIn and Facebook. Now that klout has  scoring on twelve  platforms it starts to feel less like influence management and more  like data collection.  Let’s be real. Just as on Facebook, you’re not  the customer, you’re the product.
[notice]You’re not the customer, you’re the product.[/notice]
I’ve reviewed klout’s Privacy Policy <here>  but it deals with the information you share directly with klout, not  the information you later give klout access to when you connect klout to  social networks such as Facebook.  For example, when you connect klout  to Flickr you see this warning:

"including private content"
 
 
It seems that I’m granting klout access to information that is kept private on Flickr. I asked klout Marketing Manager, Megan Berry (@meganberry) about this. (For the record, Megan has always been a real straight-shooter with me in my brief exchanges with her.)
Regarding the Flickr example, Megan replied:
On flickr: Your private photos will definitely stay private. We are
asking for the lowest level of permissions flickr allows which is
read-only access and does include private photos (we can’t change
that). However, we NEVER use your auth to display photos, or look at
them or share them. Instead, our algorithm looks at the response your
photos are getting — i.e. are people commenting, favoriting them etc.
We will never access or use your private information.
On privacy in general:
Klout collects data from your networks in order
to discover your influence. We do not share any of your private data
or email address with 3rd parties. We do not access your Twitter DMs,
private Facebook messages, private Flickr content or any other private
communication.
I  want to believe Megan, I have a lot of respect for Joe and the whole  team, yet unless I’m misunderstanding the privacy policy, what Megan  shared is not in their stated klout privacy policy. Why not spell it out  further?
My advice is for users to be aware of what they are  agreeing to be connecting your social networks on Empire Avenue,  PeerIndex and klout. Don’t take your privacy for granted. If your  concerned, don’t link your accounts. Some measure (a little? a lot?) of  the scoring comes from the public view of your web 2.0 life. Perhaps  that’s enough for you.
Feature photo credit Rusus Gefangenen