The importance of backing up WooCommerce data is highlighted as insurance against site crashes and technical disasters, allowing for easy restoration and ensuring valuable customer information remains intact. Backups also enable experimentation with new designs and styles without sacrificing the original, facilitating A/B testing and sales-driven design decisions. For free, users can leverage plugins like UpdraftPlus to easily back up their WooCommerce sites, offering automatic scheduling options and remote storage destinations to ensure data safety. Restoring backups is a straightforward process, allowing users to quickly recover their site data in case of an issue.