Oh Canada, Here Comes ServiceTitan
August 5, 2019 | Contributed by: Neal Polachek
I saw this article in the Los Angeles Business Journal last week about ServiceTitan’s push into Canada. As we’ve written before, ServiceTitan has been gaining traction among investors and local home service providers. ServiceTitan’s purchase of CUC Software offers it an entry point into the Canadian market.
And this is not the first or last acquisition for the company. With a recent raise of $165 million, ServiceTitan is armed with the capital it needs to expand and scale.
Some interesting tidbits. First, the article says they have 50,000 contractors. Late last year when I wrote this blog I had thought the company had closer to 2,500 customers — each with some 20 technicians (on average). Then the article in the LA Business Journal cites 50,000 contractors. So I did some more digging, starting with the company’s website.
If you follow ServiceTitan’s Google search ad to the landing page it references the 50,000 contractors. If you go to the ServiceTitan website — it says trusted by 50,000 people. My rough calculation is if they are buying a company that will add 100 customers, its customer base is closer to the 2,500 while its user base may well be into the 50,000 – 60,000 range by now.
Whatever the case, the company will continue to buy customers by rolling up software companies that serve the home services sector. There could be hundreds of these potentially, but most are likely very small in terms of the numbers of customers they serve. It will be interesting to see how many deals are left out there for ServiceTitan to do without getting tied in knots by the challenge of transitioning all of these acquired customers onto their platform.
I also looked around their site and learned that they intend to build out what appears to be a comprehensive content strategy.
Job posting for an editor in chief and head of content operations speak to a serious effort by ServiceTitan to stay connected to its existing customers and connect with prospects by offering the market a comprehensive source of relevant content. There are more than 60 other postings on the site, with nearly a quarter of them in customer success.
As we have said over and over, in the SMB SaaS world, the short game is about customer acquisition. The long game, however, remains all about customer use and engagement.