The `COUNT()` function is a powerful tool in SQL for determining the number of rows in a table or a subset of rows. It's crucial for understanding the size of your data and for performing various calculations. Unlike other aggregate functions like `SUM()` or `AVG()`, `COUNT()` can be used with both numerical and non-numerical columns. It's essential for tasks like calculating the total number of customers, products, or any other entity in your database. For example, you might want to know how many orders were placed in a specific month or the total number of unique product IDs in your inventory. The `COUNT(*)` syntax counts all rows, while `COUNT(column)` counts only non-NULL values in that specific column. This distinction is important for accurate results, especially when dealing with potentially missing data.