What do companies get out of rewards programs

Like why does Kroger want me to get a Kroger's card so bad

Idk maybe I'm just being too paranoid But why do they want to give me free stuff

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I've worked at Safeway for a few years and one night my friend who counts the tills showed me what type of info they collect.

I scanned my own safeway card into the system and holy shit they have data on everything I've ever purchased using that card.

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