How are loyalty cards profitable for companies

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I literally don’t understand how it’s profitable to spend points ie free money ??
Edit : I’m partially talking about spending points earned

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Anonymous 0 Comments

The points you are awarded are literally pennies on the dollar. The value of the DATA the company acquires with respect to your purchase history and trends MORE than outweighs any “free stuff” you may get as a result of freely providing them that information.

You are basically providing them with incredibly targeted data on individual consumer habits. Multiply that by hundreds, if not thousands of people doing the same, both in your community and across the country, and consumers are providing these corporations with a (virtually) free source of highly profitable research which they in turn sell on.

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