Here is a concrete interpretation: outer products are the abstract version of matrices with a single nonzero entry. Such special matrices span the space of of all matrices (of a fixed size). Does that convince you that this concept of outer product should be useful?
First let's recall the nonintuitive definition of the outer product.
For vectors $\mathbf u$ in $\mathbf R^m$ and $\mathbf v$ in $\mathbf R^n$, their outer product is $\mathbf u \mathbf v^\top$. This is an $m \times n$ matrix: if $\mathbf u = (a_1, \ldots, a_m)$ and $\mathbf v = (b_1,\ldots,b_n)$ are viewed as column vectors then $\mathbf u \mathbf v^\top = (a_ib_j)$: the product of an $m \times 1$ and $1 \times n$ matrix in that order is an $m \times n$ matrix. This doesn't explain what the matrix $\mathbf u \mathbf v^\top$ means, and that's your question.
Abstractly, an $m \times n$ matrix is a linear map $\mathbf R^n \to \mathbf R^m$. Is there something special about linear maps having a matrix representation of the form $\mathbf u \mathbf v^\top$? Yes! Most matrices can't be described in that way. To figure out what makes matrices $\mathbf u \mathbf v^\top$ special, let's see what their effect is on each $\mathbf x$ in $\mathbf R^n$. The linear map with matrix representation $\mathbf u \mathbf v^\top$ has the effect
$$
\mathbf x \mapsto (\mathbf u \mathbf v^\top)\mathbf x = \mathbf u (\mathbf v^\top\mathbf x) = \mathbf u (\mathbf v \cdot \mathbf x) =
(\mathbf v \cdot \mathbf x)\mathbf u.
$$
Notice the value of this map is a scalar multiple of $\mathbf u$ no matter what $\mathbf x$ is. So this linear map $\mathbf R^n \to \mathbf R^m$ has a $1$-dimensional image (the scalar multiples of $\mathbf u$) except in the case that $\mathbf u$ or $\mathbf v$ is $\mathbf 0$.
For example, if $u = \binom{a}{b}$ and $v = \binom{c}{d}$ then $\mathbf u \mathbf v^\top = \binom{a}{b}(c \ d) = \left(\begin{smallmatrix}ac&ad\\bc&bd \end{smallmatrix}\right)$. For $\binom{x}{y} \in \mathbf R^2$,
$\left(\begin{smallmatrix}ac&ad\\bc&bd \end{smallmatrix}\right)\binom{x}{y} = \binom{acx+ady}{bcx+bdy} = (cx+dy)\binom{a}{b}$, which is a scalar multiple of $\mathbf u$ no matter what $\mathbf x$ is, and the scalar used is $cx + dy = \mathbf v \cdot \mathbf x$.
Claim: every linear map $L \colon \mathbf R^n \to \mathbf R^m$ with a $1$-dimensional image has the form $L(\mathbf x) = (\mathbf v \cdot \mathbf x)\mathbf u$ for some nonzero $\mathbf u$ in $\mathbf R^m$ and $\mathbf v$ in $\mathbf R^n$.
I am not saying linear maps with a $1$-dimensional image look like $\mathbf x \mapsto (\mathbf v \cdot \mathbf x)\mathbf u$ for unique $\mathbf u$ and $\mathbf v$, since for nonzero scalars $c$,
$(\mathbf v \cdot \mathbf x)\mathbf u =
(c\mathbf v \cdot \mathbf x)((1/c)\mathbf u)$. That is, $(1/c)\mathbf u$ and $c \mathbf v$ define the same linear map $\mathbf R^n \to \mathbf R^m$ for all nonzero scalars $c$.
Proof: Let $\mathbf u$ in $\mathbf R^n$ be an arbitrary nonzero vector in the image of $L$. Since the image is $1$-dimensional, $L(\mathbf R^m) = \mathbf R\mathbf u$. So for each $\mathbf x$ in $\mathbf R^m$, $L(\mathbf x) = \varphi(\mathbf x)\mathbf u$ for a unique real number $\varphi(\mathbf x)$. Linearity of $L$ implies $\varphi \colon \mathbf R^m \to \mathbf R$ is linear and not identically $0$ (otherwise $L$ would have image $\{\mathbf 0\}$). And here is the key point: every nonzero linear map $\mathbf R^m \to \mathbf R$ is forming an inner product with some nonzero vector in $\mathbf R^m$. So there is a nonzero $\mathbf v$ in $\mathbf R^m$ such that $\varphi(\mathbf x) = \mathbf x \cdot \mathbf v$ for all $\mathbf x \in \mathbf R^m$. Therefore
$$
L(\mathbf x) = \varphi(\mathbf x)\mathbf u =
(\mathbf x \cdot \mathbf v)\mathbf u =
\mathbf u (\mathbf v \cdot \mathbf x) =
\mathbf u (\mathbf v^\top \mathbf x) =
(\mathbf u \mathbf v^\top) \mathbf x,
$$
so as an $m \times n$ matrix, $L$ is the outer product $\mathbf u \mathbf v^\top$.
Thus we have a conceptual explanation of an outer product of a nonzero vector in $\mathbf R^m$ and a nonzero vector in $\mathbf R^n$ (in that order): it is the same thing as a linear map $\mathbf R^m \to \mathbf R^n$ with a $1$-dimensional image. In order to allow one of the vectors involved to be $\mathbf 0$, we can say an outer product of a vector in $\mathbf R^m$ and a vector in $\mathbf R^n$ (in that order) is the same thing as a linear map $\mathbf R^m \to \mathbf R^n$ whose image has dimension at most $1$.
The conceptual meaning of outer products is best revealed using the language of tensor products (if you know what those are). The space of all linear maps $\mathbf R^n \to \mathbf R^m$ is $\mathbf R^m \otimes_{\mathbf R} (\mathbf R^n)^*$, where
$(\mathbf R^n)^*$ is the dual space of $\mathbf R^n$.
The outer product $\mathbf u \mathbf v^\top$ corresponds to the simple tensor $\mathbf u \otimes \varphi_{\mathbf v}$, where $\varphi_{\mathbf v}$ is the linear map "form the inner product with $\mathbf v$ on $\mathbf R^n$". So the fact that
$(1/c)\mathbf u$ and $c \mathbf v$ for nonzero scalars $c$ define the same linear map $\mathbf R^n \to \mathbf R^m$ corresponds to the tensor property $\mathbf u \otimes \varphi_{\mathbf v} = (1/c)\mathbf u \otimes c\varphi_{\mathbf v}$.
Every tensor is a sum of at most $mn$ simple tensors, which corresponds (using the standard bases of $\mathbf R^m$ and $\mathbf R^n$) to saying every $m \times n$ matrix is a sum of matrices with a single nonzero entry in the matrix.