Klout has been the leading source for ranking your social media, and specifically Twitter, influence. Essentially is calculates your influence by how often you tweet, retweet, mention people and how often people retweet and mention you. It takes into consideration the level of influence of the people you interact with when calculating your influence. But many people have argued that Klout is not a great gauge for actual influence. They argue that it does not accurately gauge who is influential for you, the quality of your engagement or the quality of your retweets. It is basing your influence off of the numbers. The problem with this is that you can make an argument that your score is then based on the influence of popularity.
Those that argue that Klout is arbitrary are not wrong. But it is hard to gauge your influence, and the Klout measuring system is the best empirical analysis that we have. Some of the great measures of Klout are amplification and true reach. This tells you how many people you are actually reaching and through viral marketing, how many people are seeing your tweets. The viral marketing element being your tweet gets retweeted which gets retweeted and so on.
Much of this data has seemed obscure or in a bubble. They were numbers that were not tied to anything. You could see who your influential followers were, but the feedback was purely numbers without interpretation. Klout is changing this. They are now offering a level of interpretation to their analytics.
Now if you have a jump in your amplification it will tell you which influencer is responsible. They are trying to create a higher standard for measuring influence to create a more accurate representation of what influence means. Their new algorithm is not just taking into account your tweets to mentions to retweet to follower ratios. They are now taking those numbers and analyzing them in context of your Twitter behavior. For instance, say you have a lot of followers. Many of those people are influential, but you do not interact with them very much. When you chose to retweet someones content, that will have a bigger impact than the person who blindly retweets everything.
Though the arbitrary argument can still be made, the changes to give more clout to Klout.