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Product Insights

Heap's Top 6 Predictions for 2023

Heap
January 14, 20234 min read
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If we’ve learned anything from the past few years, it’s hard to predict what the new year will bring. And with the climate in tech, it may feel more difficult than ever to imagine what to expect from 2023.

Despite all of that uncertainty, many things can be gleaned from current economic conditions and trends in technological innovations. 

To help you prepare for the new year, we spoke to our executive team at Heap to hear what their top predictions are for 2023.

1. The necessity of product analytics will increase given the instability in tech

“This past year has brought unprecedented volatility to the tech landscape. As of mid-November, more than 73,000 US tech workers have been laid off in mass job cuts. Although the pressure to innovate continues to mount, tech can no longer risk big bets based on gut instinct alone. To survive 2023, companies will need analytics to navigate these stormy waters. Only with analytics can teams ensure they’re making the right strategic investments to grow their business, support their customers, and drive the bottom line. One missed opportunity or unexpected result could be the iceberg that sinks the ship. In the coming year, teams that invest in a strong analytics foundation will have the power to not only survive, but thrive.”

-Mona Popli, VP of Product Marketing

2. Teams will use self-service analytics to revolt against the HiPPO

“According to IDC research sponsored by Heap, 69% of digital product teams reported that decisions were often driven by the highest paid person in the room (HIPPO). Letting HIPPOs base critical decisions on instinct can lead to volatility in an organization, and with the state of the current economic market, it can be catastrophic. In 2023, more teams will revolt and use data to fight executive “gut” decisions. They’ll utilize self-service analytics tooling becoming more readily available on the market to better drive investments and business results. The same IDC survey revealed that organizations that rely on data had a 2.5X increase in overall business outcomes.”

-Rachel Obstler, EVP of Product

3. AI-based tools will continue to grow, but fail to offer useful insights

“In 2023, we expect to see a continued explosion of AI-based tools. While AI can reveal straightforward results, such as whether users purchased a service or not, it lacks nuanced insight into what those outcomes mean, and more importantly, how companies should respond to them. These gaps ultimately lead to an incomplete picture of what customers are actually doing within digital experiences. In contrast, we expect to see the most successful digital product teams leveraging analytics services that utilize advanced data science to provide actionable insights.” 

-Mona Popli, VP of Product Marketing

4. Companies will need to adapt to GenZ’s buying power

“Over the next two decades, between $35 trillion and $68 trillion will be inherited from Baby Boomers. The largest wealth transfer ever, this event will transform the face of commerce. One of the beneficiaries of this transaction - GenZ - are digital natives. They have higher standards for online, commercial experiences. They expect to be delighted by innovative, personalized, intuitive UI - primarily mobile. Therefore, we anticipate investment into digital insights platforms to explode across every segment and vertical. Organizations will leverage data to improve digital experiences, or they will suffer the indelible devaluation of their brand.” 

-Micha Hershman, Chief Marketing Officer

5. Companies will rely on user behavior, not identification

“Major privacy changes are occurring across the globe, which puts the onus on companies to advance privacy controls for their digital products. Given this, we expect that in 2023 digital product teams will invest in tools that track user behavior so they can focus more on what visitors do versus who they are. This will better position teams to have the data they need to optimize offers to their customer base while ensuring privacy.” 

-Rachel Obstler, EVP of Product

6. PLG will continue to be a game changer in how products are sold

“Smart investments in PLG motions will continue to advance ROI. Over the next year, we’ll see more and more companies reinforce their PLG strategies with tech that supports real-time segmentation and experience customization at scale. By building differentiated experiences that anticipate each individual customer’s needs, companies will see accelerated time to value and more efficient growth. But accomplishing this level of personalization requires a complete understanding of the entire customer journey, in all its complexity. Identifying the right optimizations for an audience requires an understanding of not only what users are doing, but why they are doing it. The most successful PLG motions will be built by the teams that fully harness the why behind the what.”

-Mona Popli, VP of Product Marketing

Get ready for what's coming

Now that you've read our predictions, do you feel like you're prepared for what's coming? If the answer's no, we've got you covered!

We've compiled together actionable resources to go along with some of our key predictions. Make sure you and your team are best set up for success by downloading the guide below:

Download Guide

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