Truth In Advertising
Social media needs an interpreter. I've never read a more true statement than, "fans and followers have not value as a stand alone number". That statement is correct in particular and in general.
Web metrics are best used as part of a modeled system of Key Performance Indicators (KPIs). KPIs should inform actions. If you are monitoring something and NOT changing your Internet marketing based on what it says (in some way and don't forget numbers that make up your ecosystem and so inform action) then stop measuring it.
The distance between your KPIs and action should be short. The time it takes to take action can be long, depending on the KPI, but creating informed action is why you measure and this post explains HOW to measure social media.
No article can tell you exactly how to measure SMM for your business since how you segment and group is usually highly individual, but this post can help you get started. Metrics are magical and can keep the financial gatekeeper bears at the door, but only measure what has meaning and create that meaning from your modeled ecosystem.
Why Klout Matters
Interesting development. Klout is the great undervalued asset of the social marketing revolution. Problem with Klout is no one trusts it. When I tried to explain why trust is MOOT to my previous employers they didn't get it.
Trust is moot because in the absence of anything else some metrics always beat no metrics. My previous employer was arguing the "Where's the ROI" argument when the content marketing we created raised their Klout score 292%.
As an Internet marketer debate over whether 2 + 2 = 4 is moot because so what (lol). If something tells me WHY 2 + 2 = 4 or how I can get the social shares and viral lift I need from it then we can make money.
The other point I made is when something goes up 292% ASSUME there was ROI benefit. THAT is the correct debate to have - the attribution debate. I could argue 50% of new business was influenced by our content marketing and they would argue something less.
But at least we would be having the right argument in the right way (lol). M