I've done this in the past when recording my daughter's vocals - she's only just turned 6, so trying to get her to keep a constant distance from the mic is impossible.
Compressors are great for giving character to a voice, and I use them extensively, but for correcting massive volume differences in vocals just ends up crushing the loud bits way too much.
Splitting the vocals up into the various phrases and normalising each one gives a far more natural sound. I do this first, bounce to clips, then continue with my normal vocal processing (compression, eq, reverb etc).
Recently though, I've started using Waves Vocal Rider, which does the whole lot for me in a fraction of the time. It also saves me tearing out my hair due to the bugs in Cakewalk's clip handling. There are workarounds, but they're time consuming.