Rank drops are common and can often be due to algorithm updates. Get a thorough assessment done on your site by a reputed SEO company to find out what caused the dip and how to recover from it.
Yes, by improving your keyword positions and achieving 1st page rankings you will see a boost to your website traffic.
For both online and offline businesses, online prominence helps to create brand awareness and handling reputation management. For online brands, first-page ranking will bring in more potential customers.
From our previous experience, it generally takes 4 to 6 months to see results. But remember this will only get better with time.