One of the coolest things about business blogging is the social interaction and community that is built when readers leave meaningful comments. Like a good story, a post elicits a response from the reader. As your community develops, the value of your brand increases. But this warm and fuzzy feeling that people get about your brand as they interact with you on your blog can be hard to measure and quantify. That’s where blog interaction metrics come in.

Building a blog to one or more interaction metrics can help you focus on what’s important - brand engagement.

Do you measure a successful post by the number of readers, bookmarks added to del.ic.ious, diggs, comments, number or quality of backlinks, or a combination of all the above? Some metrics have a place in your blog marketing scorecard, like number of comments. And some do not, like number of trackbacks (unless you like counting spammers — and that you could do all day!). Because the last thing you need is just more data for the sake of data.

Avinash Kaushik came up with some really nifty blog success metrics that really resonate with me. I bet they’ll resonate with you too. They are:

• Raw author contribution (posts per month and words per post)
• Audience growth (onsite & offsite, visitors and unique visitors)
• “Conversion” rate (comments per post)
• Citations (blog inlinks, Technorati rank)
• Ripple Index (# of unique blogs linking to your blog)
• Cost (time, hardware/software technology, opportunity cost
• Benefit / ROI (comparative vs. direct vs. “non-traditional” vs. unquantifiable)

As you start measuring the above and then gauging the success of what you’re doing on your blog based on these metrics, you can tie your activities back to something more meaningful than just the “hits” you’re generating.

If you want to learn more about metrics, I encourage you to watch the archived recording of a “Website Metrics and ROI” webinar that Avinash and I presented last year. No registration required. Just click and watch (or download). It’s 100 minutes of the two of us talking about our favorite metrics — not just for blogging, but also email marketing, web marketing, search marketing, and more. And if you just want to scan over our Powerpoint slides before you invest 100 minutes of your time (and I don’t blame you — time is precious!), here’s the PPT file. Enjoy!

What blog metrics do you value most? How do your readers interact with you? Do you have any particular reporting tools you recommend? Your interactivity is welcome and invited.

Usually faux blogs get lambasted on the blogosphere for violating the unwritten business blogging rules of transparency, openness, and authenticity. (Remember Raging Cow?) Not so with “Fake Steve Jobs,” aka Forbes columnist Daniel Lyons, who gave a hilarious speech at the Web 2.0 Expo last Friday. The 25-minute video is embedded below:

Lyons’ main points about his successful blog are:

• It’s material he’s excited about
• He has fun writing on FSJ
• He embraces audience participation
• The mystique behind FSJ’s identity helped build the blog’s readership

Lyons covers three “Whys” behind the Fake Steve Jobs blog: why he got into blogging (fear and boredom), why he chose Steve Jobs (he’s narcissistic, Apple has bad PR, and Apple fans tend to be so, well, fanatic), and why it works (it’s the audience!). When he first learned of successful business blogs like Jonathan Schwartz’ at Sun Microsystems, Lyons thought it was a great idea. But what if one of those blogging CEOs went crazy and posted all kinds of un-photogenic, not-approved-by-PR material? Thus Fake Steve was born, and readers found it interesting. He had 90,000 monthly readers within 6 months of launch.

“I think what’s happening in media is profound and interesting. This thing [Fake Steve Jobs] is all very wrong, obviously very stupid and primitive, right? But it’s a great way to learn about how new media might work. I think the biggest change we’re going to have is the involvement of the audience. Where Internet media is going to get interesting is when we start really exploiting the uniqueness in it rather than paving a cowpath. First generation Forbes.com was, take the print magazine and put it online. Hulu was take TV shows and put them online. But when we start involving the audience, and having people form a group to entertain themselves, I think that’s going to get really interesting.”