Heap raises $ 110 million to automate analysis of digital experiences

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Heap, a digital analytics platform, today announced that it has raised $ 110 million in a funding round led by Sixth Street and Goldman Sachs with participation from NewView Capital, Menlo Ventures, DTCP, Triangle Peak Partners, Alliance Bernstein Private Credit Investors, Maverick Ventures, and the Private Equity Fund. CEO Ken Fine said the new revenue – which brings Heap’s total to $ 205 million, valuing the company at $ 960 million – will be spent on hiring and product development as Heap continues to grow. increase the size of its clientele.

The pandemic has shed light on experiences on the web, which have quickly become one of the dominant ways physical businesses have reached customers during shutdowns. As businesses that had not invested in online presences before have realized, aspects like page load times can have a big impact on visitor satisfaction. According to a 2019 Portent survey, website conversion rates drop an average of 4.42% with every additional second of load time.

Heap, based in San Francisco, Calif., Which was founded by Matin Movassate and Ravi Parikh in 2013, aims to identify digital issues by automatically collecting data about customers, including what they click, where they go and what theyre doing. The platform attempts to algorithmically identify the events and behaviors that have the most impact on a digital experience and provides tools to help teams locate the information they need without the help of engineers. .

Movassate and Parikh studied computer science together at Stanford before joining the Winter 2013 class of Y Combinator, where they founded Heap. Movassate briefly held the position of Product Manager at Facebook while Parikh, who is no longer with the company, went on to found Airplane, an in-house development toolset service.

Above: Viewing real-time events as they occur in Heap’s online dashboard.

“The digital economy was already on the way to subsuming most of the material and service savings, but the pandemic has dramatically accelerated this trend. All of a sudden all kinds of businesses had to create a digital presence, had to start selling their goods and services digitally, and had to do it while competing against a host of other businesses that were also doing the same. , Fine said. VentureBeat by email. “Because our implementation time is so short – you just need to install a simple JavaScript snippet on your site to start collecting data on every user interaction – we’ve been able to help many companies make this transition. “

Automate analyzes

Heap’s products are designed to empower businesses to understand how customer interactions on the web affect rate, loyalty, and lifetime value. Beyond websites, Heap associates newsletters, mobile actions, apps, and emails with unique identities for business analysis.

For example, Heap’s Behavior Attribution Tool measures user behaviors in email, customer relationship management, shopping cart, customer success, and testing platforms. Marketers can use the data to determine how behaviors on a customer journey can influence revenue by tagging user actions like reading a blog, downloading a white paper, or visiting a website. a web page, by measuring the influence of marketing efforts on conversion.

Polls show that the vast majority of people don’t want to be followed online. In one study, respondents rejected the idea of ​​behavioral-targeted advertising even though it allowed websites to offer free ad-supported content, with 61% saying it wasn’t. not justified.

But Fine argues that analytics platforms like Heap only increase the automation and implementation of simpler analytics tools, freeing engineers to do more meaningful work. Heap, he says, is now used by more than 8,000 paid companies, including Freshworks, Redfin, and Snapfish.

“We typically deliver benefits to three main verticals: e-commerce, business-to-business software as a service, and financial services. For ecommerce, our primary use case is conversion rate optimization. In business-to-business software as a service, we are primarily used by product teams to improve adoption, engagement, and retention. Our financial services use cases are similar – we help improve conversion on the marketing site, then improve the use of digital products for businesses, ”continued Fine. “We believe this gives corporate teams in particular – whose products or websites can involve tens of thousands of events, far more than could ever be manually tracked – a huge advantage.

Heap competes with companies such as Contentsquare and FullStory in a rapidly growing market segment. The digital analytics industry is expected to grow to $ 8.91 billion by 2026, with compound annual growth of 17.6% from 2021 to 2026.

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Lance B. Holton