David Lewis said:
I believe your students' future employers would also constitute part of the school's customer base.
This view is absolutely right. Some years ago, a colleague and I wrote:
Consequences [of treating students as customers] are potentially disastrous, because the notion that “the customer is always right” can lead to the perceived product (course credit or degree) meeting the desires of the misidentified “customer” (student) rather than the real product (value added to student) meeting the standards of the properly identified customers (future employers and taxpayers).
See: Who Is The Customer in Higher Education?
https://arxiv.org/vc/physics/papers/0612/0612117v1.pdf
ABET accreditation in engineering and the ACS approval of degree programs in Chemistry have done a lot to maintain quality in these fields, and employers of engineers and Chemists often require or strongly prefer the accredited/approved degrees. When I interviewed for a position as the founding director of a Forensic Science Program a mid-tier university in the south, I was clear that I wanted the program to be accredited by the accrediting commission of the AAFS (See:
http://fepac-edu.org/ ). The university seemed to agree with my view and they hired me. I also began visiting crime labs in the state to speak with this customer base directly and see what they wanted/needed in graduates. They clearly expressed they were in dire need of sound scientific fundamentals rather than lots of job-specific application details. I designed the program accordingly to meet both the FEPAC standards and crime lab needs. But the university's highest goal was really student happiness and retention. They had no real intention of a rigorous Forensic Science Program (or any rigorous science program), and they had my resignation as soon as I realized this. 12 years later, a vanishingly small percentage of program graduates are working as forensic scientists.
The challenge in Physics is twofold: 1) There is no accrediting or approval program through which future employers can express what they would like to see in graduates. 2) Future employers are much more varied for physics graduates than they are for graduates in Chemistry, Forensic Science, or a specific field of Engineering. The stronger programs (meaning more rigorous academically) tend to see graduate school as being the biggest customer of their graduates. (And it probably is.) But the weaker programs both lack a clear vision for the employable skills of their graduates, as well as the required academic rigor to ensure proficiency for graduates in whatever learning objectives they settle on. What good is a well-identified customer and great learning objectives if a degree is not anywhere near an indicator of proficiency?
My view is that a sharp, well-trained mind, an excellent work ethic, and the ability to follow instructions are more important to potential employers of physics graduates than a specific skill set. A degree of sufficient rigor that students really had to work hard 40-60 hours a week for 8 semesters better prepares students to be good employees even if it missed a some topics a specific employer would prefer. Graduates who learned to be diligent can pick up new skills quickly. In contrast, students who managed to pass with only an hour or two effort each week outside of class most weeks are lazy and will not make good employees even if the topical coverage of their curriculum was much more in line with employer needs.
Zooming back out, there are just too many common employment paths for Physics grads to hit the right topics for all of them with the number of credit hours of Math and Physics in most 120-128 credit hour degree programs. But we can teach honest hard work, the ability to follow instructions and turn work in on time, and impart sharp, analytical minds to all our graduates.