When your service goes down, the first thing your customers do is check whether you already know about it. If they find nothing -- no acknowledgement, no update, no indication that anyone is working on the problem -- trust evaporates. A public status page is the single most effective tool you have for preserving customer confidence during incidents.
Consider the difference between two scenarios. In the first, a customer discovers your application is returning errors. They search your website, find nothing, and submit a support ticket. Twenty minutes later, they receive a generic "we're looking into it" reply. In the second, the same customer visits your status page, sees a clear acknowledgement of the issue posted three minutes after detection, and reads a description of what's affected and when the next update will arrive. The second scenario transforms a frustrating experience into one that actually reinforces confidence in your team.
The business case goes beyond sentiment. Organisations with well-maintained status pages consistently report significant reductions in inbound support tickets during incidents. When customers can self-serve information about ongoing issues, they don't need to contact your support team. That means your engineers can focus on resolving the incident rather than answering the same question hundreds of times.
Status pages also serve an internal purpose. They create a forcing function for incident management discipline. When you know that every incident will be publicly visible, your team naturally develops better detection, triage, and communication habits. The status page becomes the public face of your operational maturity.
For SaaS companies in particular, a status page has become table stakes. Enterprise buyers routinely check for one during procurement evaluations. If you don't have a status page, the implicit message is that you either don't experience incidents (which nobody believes) or you don't have the processes to manage them transparently.