This is a guest post for Wired.co.UK Ideas Bank section by Azeem Azhar, CEO of PeerIndex who is sharing some very valuable insights on measuring influence. Understanding and leveraging your personal influence, your audience, clients and customers through influence measurement companies like PeerIndex and Klout will be crucial to your business success.
"Companies should be looking beyond predicted customer lifetime values and towards customer network lifetime values, which factor in an individual's influence over their peers"
Here's what caught my attention:
**It is time to replace customer lifetime value with the idea of customer network value (CNLV).
This is the notion that a customer's value to a company is the
discounted value of their future purchases plus the discounted
value of the referrals they drive to your business
**Why does this matter?
the science of influence is -- as with so many other things -- being democratised by the internet.
Interaction on social networks provides brands with a map of influence at a macro level.
**Instead of relying on a handful of hard-to-reach celebrities or journalists for advocacy, brands can identify and activate their truly influential fans, ordinary people who have built strong reputations in certain subjects, a group we call the "magic middle".
New social influence marketing firms like PeerIndex and Klout, are providing brands with these influence maps, letting them identify this magic middle of influencers.
If you can get your product into the hand of a few thousand magic middle influencers in an honest way, you can ensure an authentic conversation amongst their networks, driving awareness and, more importantly, referral, advocacy and purchase.
Customer network value is only going to become more important, driven by a renewed ability to identify and leverage influence on the web
**This could have a profound impact on the way that brands spend their marketing dollars.
Selected by Jan Gordon covering "Curation, Social Business and Beyond"
See full article here: [http://bit.ly/R0oUeS]