In service organizations, the major challenge is to satisfy the customers on the spot. Because in services customer and frontline worker's interaction holds the utmost importance. The results or outcome of the service is clearly analyzable e.g. A customer having a bad food will react quickly in a restaurant. Therefore it is necessary for the service based organizations to keep in mind each and every contact point of the customer. Another challenge is to cope with the competitors and let the customer make loyal to the organization e.g. In services, there are more chances of customer shifting to the other service if the service is not available e.g. A customer might goto another restaurant if he doesn't find table in the restaurant or go to another car service station if he doesn't get satisfied with the service. The service is more like a human one-one interaction, any small mistake can turn the profitable customer to ex-customer.
