Reader Alert! You have only 36 hours left to register for The Financial Brand Forum 2015 and save $100.00. Don't wait, register now!
Codigo | Retail Media Solutions

Why Proponents Of Klout Are Missing the Big Picture

Jay Baer wrote a blog post titled Why Critics of Klout Are Missing the Big Picture in which he argues that  “influence measures help business create order from chaos.” Baer goes on to write:

“What’s important is to recognize that more and more and more and more of our behaviors occur online and often with the social media realm. And if companies are going to succeed in a chaotic, real-time environment, they need some mechanism – even a flawed one – to triage promotion and reaction. So yeah, Klout isn’t perfect. But instead of rehashing the same old “look how screwed up their formula is” argument, let’s focus instead on how advanced metrics will enable companies to deliver highly specific interactions with customers based on perceived influence.”

My take: Baer makes a good and valid point. But I think Baer and I might disagree on what the “big picture” is.

Baer’s definition of big picture  seems to be “making sense of chaos.” My notion of the big picture is “making the right decisions.”

And, using my definition, what I see are marketers making questionable business decisions based on people’s Klout score.

The best example I can give you to demonstrate this is the bank that’s reserving the best spots in its parking lots for its customers with a high Klout score.

Let me state this is no uncertain terms, and aim it directly at the bank with which I do business:

If you reserve the best spots in your parking lot for some pimply-faced 25 year old (who spends too much time on Facebook and Twitter and has somehow managed to get himself a high Klout score) instead of for me, then I’m pulling my millions out of your bank.

If you think I’m kidding, try me. And I’ll also pull my kids’ accounts (they’re Gen Yers, btw — not little kids), too.  THEN you’ll learn who has INFLUENCE. And when dear-old Mom and Dad (who turns 80 this year!), ask me to take over the day-to-day management of their finances, their money is getting pulled out of your bank, as well. THEN AGAIN you’ll learn who has INFLUENCE.

All because you made the bad decision to reward one group of customers over another.

Bottom line: The purpose of a business metric isn’t just making sense out of chaos — it’s taking action. And unless your customer base is made up of just heavy social media users, then making decisions on what to do based on Klout scores may lead to sub-optimal decisions. 


Ron ShevlinCheck out Ron Shevlin's newly-released book, Smarter Bank: Why Money Management is More Important than Money Movement to Banks and Credit Unions. According to Brett King, “Ron Shevlin is famous for his snarky sense of humor, and his well-researched, well-considered takes on banking and customer behavior. If you are in banking, you should read it--you will come away smarter and better informed."

Search For More: Snarketing

All content © 2015 by The Financial Brand and may not be reproduced by any means without permission.

The Financial Brand Forum 2015 | April 29 – May 1 | Las Vegas

Comments

  1. It is a catch 22. If they get the big picture they would not be giving klout a second look would they?

  2. Klout??

Speak Your Mind

*

Next article recommended for you
snark-thumbnail