- On recorded items. Compression helps me turn up an electric bass so the bassline is clearly, tonally audible, without loud plosives in my low end overpowering the mix and competing with the drums.
- When I want to create apparent loudness. I'll put a reverb on a channel--sometimes, two reverbs, a tight and a big one---and then compress the signal after the reverb, which makes the recording seem louder.
With non-recorded channels (i.e. VST synths and drum machines) I have never felt the need to compress because I have such granular control over those sounds. If a kick drum is too plosive, I can just change the output in the VST. If a synth line has loud peaks, I can just bring down the velocity on individual notes. There might be some compression magic that I have yet to understand, though.