New Minn Kota with Heading Sensor - Install ?s

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I just assume, it stores the heading when anchor is pressed and uses the stored heading, no idea what it uses after the wind blows the boat around.
Just wanted to update my previous answer, Motorguide pinpoint (gps) has a built in compass, so it gets its heading from the compass.

So, if you see a boat going in circles, they may be doing a compass calibration.
 
I believe it determines the boats forward position and shares that with GPS and then 5' jogs are based on that forward position...right, left, etc.

Not sure if spot-lock / jog functions without it, and if it does, perhaps reduces accuracy.
Could be, but I find pushing a couple buttons on my remote does the same thing...without having to go back to school.
 

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