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What is a User Profile?
User profiling is a process of collecting user research, analyzing the data, and developing personas. Personas are detailed descriptions of imaginary people constructed out of well-understood, highly specific data about real people. The goal of user profiling, of creating personas, is to make UCD possible.

Persona definition on Wikipedia

Why are personas needed?

"Interaction design is a complex and difficult craft and requires good tools like any other. The popularity of personas has exploded because they are the foundational tool upon which the practice of interaction design rests. Interaction design is about making a particular group of humans effective at achieving a narrow set of goals. Because using personas is a remarkably powerful technique for bringing those humans and their objectives into focus, it becomes the most critical tool for designing the behavior of software." - Alan Cooper

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