For example, suppose you have a lot of chess PGNs you'd like to store [1]. If you compress each PGN separately, you won't get nearly as high of a compression ratio as if you stored them all in the same file and compressed that file. But storing games individually is more convenient. Here are the numbers:
Original PGN file: 780 bytes
Default zstd compression: 508 bytes (35% decrease)
With dictionary: 376 bytes (52% decrease)
I'm thinking about ways to compress at an even higher ratio. Chess PGNs are a great candidate for this task because they have a huge amount of redundant and repeated text.