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The tutorial demonstrates the steps to achieve optimal compression rates for 7z and zip files using 7-zip. To compress files using 7z, select desired files, right-click, choose 7-zip, add to archive, select 7z format, adjust compression settings (normal, lzma, dictionary size 1024MB, word size 273, block size 4GB, CPU threads 8 or 4), and press OK. For zip compression, select zip format, adjust settings (normal, lzma, dictionary size 1024MB, word size 273, CPU threads 2, 8 or 4), and click OK to start compressing. Remember to like, comment, and subscribe for more tech tutorials.