There are two major benefits to dimensional analysis (non-dimensional coefficients) according to Frank M. White, Fluid Mechanics, 2nd Ed. My answer is heavily paraphrased from this source.
- They allow scientists/engineers to reduce the number of experiments required to explore a given phenomenon.
- They provide scaling laws allowing experiments to be performed on small, cheap scale models which can then be extended to full-size applications.
Reducing the number of experiments
If we wanted to design an experiment to measure the force on a cylinder immersed in a moving fluid, and we knew it depends on the following parameters:
$$ F = f(L, V, \rho, \mu) $$
Then if we want to properly identify the phenomenon we would need to explore a rather large parameter space. You would want to be able to fit a curve to the data, which is going to require at least 10 data points for each variable. So we would need to design an experiment with 10 values of $L$, and for each value of $L$ we would also have 10 values of $V$, and for each value of $V$ 10 values of $\rho$... and so on. This would be time consuming and expensive. However, the equation can be reduced using dimensional analysis to get:
$$ \frac{F}{\rho V^2 L^2} = g\left( \frac{\rho VL}{\mu}\right)$$
$$ C_F = g\left( Re\right) $$
Where $C_F$ is the dimensionless force coefficient and $Re$ is the Reynolds number.
Now we only need to explore around 10 values of $Re$ to start to get a basic characterization of the phenomenon. This is a greatly simplified example (there is more to fluid forces than the Reynolds number) but it serves to illustrate the point.
Furthermore, we can use non-dimensional coefficients to compare different geometries. Consider, for example, the Reynolds number. The Reynolds number can be calculated for many geometries (inside a pipe, on an aircraft wing, around the body of a submarine), different flow conditions (internal vs. external flow) and different scales, yet it can tell us important information about the nature of the flow (laminar vs. turbulent vs. transition).
Scaling laws
Non-dimensional coefficients are also useful because they allow easy comparison between engineering cases at different scales. They allow us to establish a condition of similarity between a model and a full-scale prototype.
Due to this property (independence from scale), non-dimensional coefficients are used to design scale-model tests. If you make a 1:10 model of an airplane and put it in a wind tunnel, the layperson might think you would just scale the design air velocity by the same factor (and they would be wrong). Similarly if you want to design an RC model airplane, you can't just scale down a Boeing 747 and have it fly! Here is a Wikipedia article on the subject.
Using the example function $f$ given above, we can achieve what is called similarity if the Reynolds numbers of a model and a full-size prototype are equal.
If $Re_m = Re_p$ then $C_{Fm} = C_{Fp}$
Using the definition of the force coefficient from before, we get the following scaling law:
$$ \frac{F_p}{F_m} = \frac{\rho_p}{\rho_m}\left(\frac{V_p}{V_m}\right)^2\left( \frac{L_p}{L_m}\right)^2$$
So if you were to make a model at 1:10 scale, $L_p/L_m = 10$. Assuming that the velocity of the fluid $V$ and the density of the fluid $\rho$ are identical for both, then the prototype will see 100 times the force compared to the model when subjected to these conditions.