Back in the mid-1980s, it was common to see in the reception areas of businesses a large poster depicting a magnificent male lion with the declaration beneath The Customer is King . Many employees would also add to this the subscript that the customer can be a pain in the butt, but such often-deserved observations can only rightly be made out of earshot of those customers. However, the supplier customer relationship has changed somewhat in recent years, with the customer no longer being viewed as a king who must be served and obeyed, but more as a long-term partner who shares a common interest with the business (however, that still does not stop some of them continuing to be a pain in the butt!).

This chapter is concerned with the issue of customer relations, and more specifically, with the understanding of customer perceptions as a critical factor in the development of future business strategy, with developing policies to meet those needs, and with creating an effective system of communications with customers. It matters little how brilliant an owner-manager is in devising long-term strategies for the business if those strategies are incompatible with the needs and perceptions of the customers, as the customers will simply buy elsewhere if they feel that the business is not meeting their needs. The chapter links to Units C1, C2, C3, C4 and D2 of the revised vocational standards.