Snowflake schemas play a critical role in database design, particularly within data warehousing. This multidimensional model organizes data into fact tables and normalized dimension tables, creating a more efficient structure for complex queries. By eliminating data redundancy, snowflake schemas improve storage efficiency and make it easier for users to analyze data from different perspectives. They also facilitate better performance in reporting and analytics situations. Overall, snowflake schemas support the need for precise and organized data representation, crucial in large-scale data applications.