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Higher efficiency means that the motor is able to handle more power before reaching the temperature it had as a low efficiency motor.
An example:
Say the motor has an efficiency of 70% and it can handle 50Watt input. That means it can get rid off 0.3*50=15Watt excess heat. Now, by cramming in thicker wire, efficiency increases to 75% (we're being optimistic here), the ability to lose those 15Watts has not changed. This means the motor now can handle 60Watt before it hits the 15Watt (0.25*60Watt) losses mark. An efficiency increase of 5% gives an increase in power of 20%. That's why efficiency plays such an impertant role, in any motor design: efficiency governs maximum power.
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