1. Lighthouse

Level 8 · Customer spend quartiles

The request

From Laura Bennett, Head of Finance

“For the board pack I want our customers split into four equal-sized groups by how much they've spent with us. For each quarter of customers: the spend range and what share of revenue it brings.”

Your goal

Using completed orders and lines with quantity > 0, compute each customer's lifetime revenue (sum of quantity * unit_price * (1 - discount_pct / 100.0)). Split customers into 4 groups with NTILE(4), ordered by lifetime revenue descending (ties broken by customer_id ascending), so group 1 holds the top spenders. Return one row per group with: spend_quartile, customers, min_revenue and max_revenue (lowest and highest lifetime revenue in the group, rounded to 2) and pct_of_revenue (the group's revenue / total revenue * 100, rounded to 1). Sort by spend_quartile ascending.

  • Read from the customers tablenot done yet
  • Read from the orders tablenot done yet
  • Show exactly spend_quartile customers min_revenue max_revenue pct_of_revenuenot done yet

Your query

SQL

Loading the editor…

    ResultPreview of customers · press Run to see yours
    Preview of customers
    customer_idfirst_namelast_nameemailcity
    1OwenHudsonowen.hudson@icloud.comSan Francisco
    2DouglasMendozadmendoza69@gmail.comAtlanta
    3HenryBrookshbrooks@lakesidecafe.comLos Angeles
    4BrianGrahambgraham@bluecedarhomes.comSeattle

    Mote checks your result

    Press Run. Each row that matches the goal becomes a firefly in your lantern.

    Tables

    Harbor & Pine store data, ready to query.

    customers2,018 rows · 9 columns
    • customer_idinteger
    • first_namevarchar
    • last_namevarchar
    • emailvarchar
    • cityvarchar
    • statevarchar
    • signup_datedate
    • segmentvarchar
    • referral_sourcevarchar
    First 5 rows of customers
    customer_idfirst_namelast_nameemailcitystatesignup_datesegmentreferral_source
    1OwenHudsonowen.hudson@icloud.comSan FranciscoCA2022-06-02consumersearch
    2DouglasMendozadmendoza69@gmail.comAtlantaGA2022-06-02consumerNULL
    3HenryBrookshbrooks@lakesidecafe.comLos AngelesCA2022-06-04businessNULL
    4BrianGrahambgraham@bluecedarhomes.comSeattleWA2022-06-06businesspinterest
    5KyleJimenezkjimenez27@yahoo.comIndianapolisIN2022-06-07consumerNULL
    orders12,000 rows · 7 columns
    • order_idinteger
    • customer_idinteger
    • order_datetimestamp
    • statusvarchar
    • channelvarchar
    • shipping_feedecimal
    • coupon_codevarchar
    First 5 rows of orders
    order_idcustomer_idorder_datestatuschannelshipping_feecoupon_code
    10011252023-01-01 20:51:19completedweb0.00NULL
    10021562023-01-02 07:58:46completedweb0.00NULL
    1003222023-01-02 10:25:27completedmarketplace4.99WELCOME10
    1004482023-01-02 11:21:51completedmarketplace4.99WELCOME10
    1005822023-01-02 11:43:36completedweb0.00WELCOME10
    order_items30,338 rows · 6 columns
    • order_item_idinteger
    • order_idinteger
    • product_idinteger
    • quantityinteger
    • unit_pricedecimal
    • discount_pctdecimal
    First 5 rows of order_items
    order_item_idorder_idproduct_idquantityunit_pricediscount_pct
    11001121931.990.00
    21001154311.990.00
    31002154411.990.00
    410021941149.000.00
    51002193219.990.00
    products120 rows · 8 columns
    • product_idinteger
    • namevarchar
    • categoryvarchar
    • subcategoryvarchar
    • unit_pricedecimal
    • unit_costdecimal
    • launched_ondate
    • is_activeboolean
    First 5 rows of products
    product_idnamecategorysubcategoryunit_priceunit_costlaunched_onis_active
    101Vale Velvet LoveseatFurnitureSofas1659.00NULL2023-09-11true
    102Alder Oak Coffee TableFurnitureTables919.00503.502024-05-16true
    103Orchard Rattan Dining ChairFurnitureChairs789.00429.872023-05-27true
    104Upland Oak BookcaseFurnitureStorage429.00214.702022-12-20true
    105Avery Leather Bed FrameFurnitureBeds449.00232.702021-08-31true
    returns1,673 rows · 5 columns
    • return_idinteger
    • order_item_idinteger
    • returned_ondate
    • reasonvarchar
    • refund_amountdecimal
    First 5 rows of returns
    return_idorder_item_idreturned_onreasonrefund_amount
    1142023-01-10damaged83.69
    2422023-01-10wrong_item19.99
    31052023-01-14wrong_item10.99
    4242023-01-16changed_mind26.99
    51262023-01-16late20.99
    employees60 rows · 8 columns
    • employee_idinteger
    • first_namevarchar
    • last_namevarchar
    • departmentvarchar
    • titlevarchar
    • manager_idinteger
    • hire_datedate
    • salaryinteger
    First 5 rows of employees
    employee_idfirst_namelast_namedepartmenttitlemanager_idhire_datesalary
    1CatherineHaleExecutiveChief Executive OfficerNULL2016-03-01285000
    2RobertKimExecutiveChief Operating Officer12017-01-09235000
    3MeganCollinsSalesHead of Sales12018-04-16172000
    4ChloeGutierrezSalesAccount Executive32020-01-2172000
    5FrankBellSalesAccount Executive32023-05-2173000
    web_sessions40,000 rows · 7 columns
    • session_idinteger
    • customer_idinteger
    • started_attimestamp
    • devicevarchar
    • sourcevarchar
    • pages_viewedinteger
    • convertedboolean
    First 5 rows of web_sessions
    session_idcustomer_idstarted_atdevicesourcepages_viewedconverted
    1NULL2023-01-01 23:02:24mobilepaid1false
    2182023-01-01 15:07:49desktoppaid1false
    3NULL2023-01-01 16:55:46desktopdirect7false
    4NULL2023-01-01 12:43:28mobileorganic3false
    5NULL2023-01-01 13:06:21mobilesocial2false
    marketing_spend3,276 rows · 3 columns
    • spend_datedate
    • channelvarchar
    • amountdecimal
    First 5 rows of marketing_spend
    spend_datechannelamount
    2023-01-01paid492.99
    2023-01-01email37.38
    2023-01-01social200.53
    2023-01-02paid709.13
    2023-01-02email64.13

    The lesson

    NTILE(n) splits ordered rows into n groups of nearly equal size and returns the group number. It is the quickest way to build quartiles (4), quintiles (5) or deciles (10).

    Recap: equal-sized groups

    SELECT product_id, name, unit_price,
           NTILE(4) OVER (ORDER BY unit_price DESC, product_id) AS price_quartile
    FROM products;

    The 120 products divide evenly, so each quartile holds 30. When the count does not divide evenly, the first groups get one extra row: the 1,730 customers with a completed order split into 433, 433, 432 and 432.

    NTILE cuts by row count, not by value. Two customers with nearly the same revenue can land in different quartiles if the boundary falls between them, and the quartiles cover very different spend ranges. That is the point of the ticket’s min and max columns:

    spend_quartile customers min_revenue max_revenue pct_of_revenue
    1 433 3,067.95 184,730.27 78.6
    2 433 1,182.90 3,054.89 14.2
    3 432 454.97 1,182.74 5.7
    4 432 8.79 453.95 1.4

    The top quarter of customers brings almost four fifths of revenue, and its range is enormous: three business accounts have each spent more than $100,000, while the quarter starts at about $3,000. The bottom quarter, 432 customers, adds up to 1.4% of revenue, which is useful context before anyone spends money on reactivating them.

    Grouping by a window result

    The window runs in a CTE first; only then can you GROUP BY spend_quartile, because a window result cannot be grouped in the same SELECT that computes it. The share uses a window on top of the grouped sums, SUM(SUM(revenue)) OVER (), which you have seen with counts.

    Common mistakes

    • Ascending order. ORDER BY revenue makes quartile 1 the smallest spenders. State the direction.
    • No tie-breaker. Equal revenues at a boundary can switch groups between runs.
    • Confusing NTILE with value bands. If finance wants fixed thresholds ($500, $2,000), use CASE instead.

    In SQL Server

    NTILE(4) OVER (ORDER BY revenue DESC, customer_id) is identical. SQL Server’s PERCENTILE_CONT(0.25) WITHIN GROUP (ORDER BY revenue) OVER () gives the value at the boundary instead of a group number.

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