Klout Shuts Down After GDPR And Facebook-Cambridge Analytica Scandal

If you’ve seen your influence barometer on Klout go down lately it’s because the social measurement platform will be shutting it’s doors effective on May 25, 2018 — the same day that the GDPR rules become official.
After Lithium Technologies made a whopping purchase from its founder, Joe Fernandez, for $200 million in 2014 the company has been on a steady decline ever since, shutting down it’s popular Perks program in 2015.
Before 2008 very few of us paid any attention to the new startup company called Klout, based in San Francisco, California. But through its unique algorithm and social measurement tools the world had taken notice and became can be a huge factor in meeting prospects, getting a promotion, customer service, hotel and shopping rewards, and more.
If you have been active on the big social networks like Twitter, Facebook, and YouTube you have had a Klout score whether you are aware of this or not. Social influence has become the norm online — but this all began with one company putting a stamp on that title. Other platforms like Kred and PeerIndex created their own social measurement systems, but Klout had come in at the right time and established itself as the standard.

What exactly caused Klout to fail?

There are a myriad of factors that come into play, starting with the sale of the company, after which the flare of its founder and team ended. People’s privacy has become an ever-pressing issue over the last few years, which has also had a negative impact on scoring.
As the GDPR rules come into effect new rules on data collection will become more stringent than ever, coupled with Facebook’s problem with privacy after Cambridge Analytica obtained information for over 50 million people online.
Today Lithium Technologies is more focused on AI technology and machine learning, as explained by CEO, Peter Hess, in a recent blog post. “The Klout acquisition provided Lithium with valuable artificial intelligence (AI) and machine learning capabilities but Klout as a standalone service is not aligned with our long-term strategy,” he writes. “We will be looking to improve agent productivity within SMM and improve the overall user experience in Community through the application of AI.”
As the rules online continue to evolve it will become increasingly difficult for services like Klout to accurately measure influence — especially as Facebook and other social networks continue to update their data collection and privacy standards. We can reflect; however, on how Klout was able to establish the buzz word, social influence, in a way that even brought celebrities and top politicians to their office doors asking why their score was not the same as someone else’s.
The future of branding online still includes authentic communication, fresh and original content, and establishing value and trust for your community and clients. Word of mouth recommendations, peer reviews, and feedback through the various technologies will become increasingly the new standard by which to measure.
The world is still seeking that one company who can truly measure up to it’s name and reach others in a remarkable way that stands out from the rest. Perhaps this change could bring in a breath of fresh air as we become less concerned about the number of a score and more focused on the value of our communities.
Klout had its time in an age when social media was still new and simple. We now live in a more advanced, tech-driven world where the human connection will become sought after like never before. But without social measurement in the first place we may have never established the value of influence in a highly competitive online environment.
What do you think? Has Klout become less important to building your brand?
Let me know your thoughts below!