The `ORDER BY` clause is a crucial part of SQL queries. It allows you to arrange the output of a `SELECT` statement in a specific order, either ascending (smallest to largest) or descending (largest to smallest). This is essential for presenting data in a meaningful way, such as displaying customer records sorted by name or product sales sorted by date. When you don't use `ORDER BY`, the database might return the data in any order, which is often not suitable for analysis or presentation. Understanding `ORDER BY` is fundamental to efficient data retrieval and manipulation. It's often used in conjunction with other clauses like `WHERE` to filter data before sorting. For example, you might want to find all customers who placed orders in the last month and then sort them by the total amount spent.