Audience targeting and segmentation tools take your customer database and split it into groups based on what people actually do, not just basic demographics. A retail company might discover that their weekend shoppers behave completely differently from weekday buyers, even when they're the same age and income level. The software finds these patterns automatically by analyzing purchase history, website behavior, and other data points you already collect.
The technology works by pulling information from your CRM, website analytics, email platforms, and transaction records, then using machine learning to spot connections humans would miss. Customer segmentation software creates unified profiles by matching email addresses, phone numbers, and other identifiers across different systems. The algorithms group customers based on similarities in behavior, timing, preferences, or predicted actions. You end up with segments that update themselves as new data comes in, plus reports showing why each group was formed and what makes them different.
These tools do something your CRM or basic analytics can't handle well. While a CRM stores customer information and lets you create simple rule-based groups, an audience targeting platform actively hunts for new patterns and predicts what customers will do next. Customer data platforms focus on collecting and organizing information, but these segmentation tools add the analysis layer that actually makes sense of all that data. Most companies use them alongside existing systems rather than replacing everything.
Marketing teams use user profiling tools to build lookalike audiences from their best customers, score leads based on conversion probability, and find market segments they didn't know existed. An online retailer might discover a group of customers who buy seasonal items two months early and create specific campaigns for them. B2B companies use demographic targeting software to identify prospects showing early buying signals. The technology keeps getting better at finding profitable customer groups that traditional marketing audience targeting methods miss, which means more relevant campaigns and less wasted ad spend.