How does a service company stay ahead of competition in meeting customer expectations?

in many competitive service businesses, service business seek to stay ahead in attracting customer by raising the level of service above that of competing businesses. However, because of a highly competitive and rapidly changing business customer service expectations can raise quickly, businesses need to monitor customers' services expectation in order to maintain customers' satisfactory services expectations. In recession, the more satisfactory services expectations are needed in order to maintain expectation of customer. In this context, a business goal is to meet customers' expectation better than its competitors. In addition to availability of service options from other businesses, the satisfactory service level reflects the minimum performance level expected by customers after they consider a variety of both personal and external factors. The five factors that influence satisfactory business include predicted service, situational factors, customer self-perceive service role, temporary service and perceived service alternatives. Predicted service, this is the level of service customers believe in their expectation and can be viewed as predictions made by customers about what they expect in service. For example, full-time residents in a university town frequently predict faster restaurant service when students are in holidays thus when they are not on campus. Situational factors viewed as service performance conditions that customers assess as beyond the control of the business service. Customers view the situational factors as not the fault of the service business and may accept lower levels of service because they understood the origin of the problem. Customer self-perceive service role is viewed as how customers expect the service. A customer who wants his steak to be no overcooked he will probably be dissatisfied if the steak comes to the table overcooked. Temporary service involves personal in short-term services that make customers more of the need for service in time of emergency. Perceived services alternatives are other service businesses that provide the services customers want. Their level of service are satisfactory than those of customers believe that are not satisfactory. Businesses whose service performance falls short of the satisfactory level are definitely at a competitive disadvantage. In this regard, customers are ready to take their business elsewhere or their purchasing power when they identify an alternative. Businesses performing in the areas of competitive advantage must stay alert to the need for service increases to meet competition. Business need perform above the satisfactory service level in order to stay in service business competitive areas.

IIn order to stay ahead of completion in meeting customer expectations, the following three items are basic 

1.   Prompt service, so that customer’s business is not hampered

2.   Quality service, so that customers remains fully satisfied

3.   Competitive pricing, so that the customers get value for money

I think it's about make customers feel it's their place. 

1. Studying global trends
2. Innovating the customer experience
3. Learning about how the customers would like to be approached

Customer reviews/feedback is the major key to  stay ahead.The feedback's should be evaluated periodically 

I agree with the rest answer

 

1. Know the competition. Find out who your competitors are, what they are offering and what their unique selling point (USP) is. This will identify the areas you need to compete in, as well as giving you a platform for differentiating yourself.
2. Know your customers. Customer expectations can change dramatically when economic conditions are unstable. Find out what matters to your customers now - is it lower price, more flexible service, the latest products? Revise your sales and marketing strategy accordingly.
3. Differentiate. It's essential to give your customers good reasons to come to you rather than a rival. Your USP should tap into what customers want and it should be clear and obvious - no-one should have to ask what makes you different.
4. Step up your marketing. Make more effort to tell people who you are, what you sell and why they should buy from you. It doesn't have to be expensive; marketing can range from posters in your window and leaflet drops through to advertising campaigns in local media.
5. Update your image. Simple steps such as painting the front of your premises can make your business look more modern and inviting. But look also at business cards, stationery, your website, branded packaging, clothing and so on. Does your image reflect your USP?
6. Look after your existing customers. They will be your competitors' target market. Provide better customer service by being more responsive to their needs and expectations. If feasible, consider offering low-cost extras such as improved credit terms, discounts or loyalty schemes - remember, it's cheaper and easier to keep customers than to find new ones.
7. Target new markets. Selling into a greater number of markets can increase your customer base and spread your risk. Consider whether you can sell online or overseas, for example. Are there groups you've never targeted before who might be interested in your offer? Don't waste time marketing to people who won't be interested, however.
8. Expand your offer. What related products or services might your customers be interested in? You might even consider diversifying into another area - many cafes have successfully offered Internet access, for example.
9. Be the best employer. Skilled, motivated staff underpin vibrant, growing businesses. But attracting them means more than paying a competitive wage - people are often more impressed by a good working atmosphere and benefits such as flexible working and structured career development.
10. Look to the future. Businesses that plan for growth are more successful than those that are happy to stay still. Keep up with developments in your sector, follow consumer trends, invest in new technology and - crucially - have a clear idea of where you want to be in one, three and five years' time.