Most consumers are familiar with loyalty programs, but the mechanics behind them are not always clear. Businesses are now leveraging AI and personalization to create more engaging and effective loyalty programs. According to a study, personalized experiences result in a 1.5x increase in customer loyalty. Matt Smolin, CEO of Hang, emphasizes the importance of leveraging AI to better understand customers and provide immersive and fun experiences. Loyalty programs are evolving beyond the traditional 'earn and burn' model, with brands now rewarding customers for various valuable actions. By incorporating gamification elements, such as mystery boxes and quests, businesses can increase customer engagement and brand advocacy. Ultimately, leveraging customer data and AI tools can lead to more engaging and personalized loyalty programs that drive desired actions and enhance customer relationships.