Beauty Business Practice Test 2025 - Free Beauty Industry Practice Questions and Study Guide

Establishing referral programs with bonuses is an effective strategy for increasing referral clients because it incentivizes existing customers to recommend the salon to their friends and family. When clients receive a reward, such as a discount on future services or a free treatment, they are more likely to share their positive experiences and encourage others to visit the salon. This not only drives new business but also reinforces customer loyalty, as clients feel appreciated for their referrals.

In contrast, simply lowering prices may not create the same sense of value or encourage genuine referrals, as customers might associate lower prices with lower quality. Focusing solely on social media marketing can help raise awareness but does not necessarily motivate current clients to actively refer others. Reducing service quality to save costs would likely deter clients from returning and undermine the reputation of the salon, ultimately leading to fewer referrals.