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

Because ooo aaaa I really want Wendy’s today but I have sooooo many McDonald’s points to use and while I’m there maybe I should get a large fries. And obviously they have already raised menu prices to accommodate a budget for this. It’s all factored in.

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