if you mean targeting audiences based on specific location when setting up paid ads (this is what I understand from the question), you can target specific location and radius around this location. However, I think that 5 mile radius is too small.
For Facebook Ads, you can target radius 17km the minimum if I'm not mistaken. Plus, if you click the blue text on the left bottom corner "Add locations in bulk", you can add locations based on zip codes (however, when I tried this, FB can't list the countries/states/areas, which relate to the zip codes I added, so maybe it's not working 100%).
For Google Ads, you can also target a specific location and the radius around (don't know the exact limitations). Plus, it's also possible to target multiple locations in bulk, you can add the locations by zip codes but you need to add the full name of the country as well. Read more here: https://support.google.com/google-ads/answer/1722043#zippy=%2Chow-to-target-a-radius-around-a-locati...
I hope this was the question you were asking, if not, please provide some more details.
As @Niki_K mentioned, what do you plan to do with this segmented information? Specific examples are helpful if possible. This will help us determine the best possible solutions to offer.
If you're on the Shopify plan or higher, then you have access to Sales reports in the Analytics section of the admin. You can view your sales by postal code and customer:
1. From your Shopify Admin, go to Analytics > Reports.
2. Next under Sales, click Sales by billing location.
3. In the top right, click Edit columns.
4. Under Billing address, select Billing postal code. As well, under Customer, select Customer name. This will add both items to the report.
5. Click the date range in the top left hand corner to adjust the time period.
You'll need to know the postal codes that exist within your desired radius, but this might help you determine who the customers are within your range. If you're not on the Shopify plan or higher, you can look into some third party reporting apps from the app store as well.
Look forward to hearing your plans for this information so we can offer some further advice.
In the admin you can also search by postcodes in a lot of cases.
If you need to automatically tag customers in the backend by postcodes or complex business logic automation apps like usemechanic can be scripted to do that
Also to get info into CSV or excel https://help.shopify.com/en/manual/customers/import-export-customers