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The tutorial demonstrates how to create personalized word documents from Excel data using the mail merge process. Mail merge allows users to generate customized letters or documents for multiple recipients by utilizing a standard template and changing specific parts for each individual. This method can be applied not only for letters but also for dynamically linking Excel data with Microsoft Word. The example shown involves using a template to send invoices to different customers, with content such as customer details, company information, services provided, and dates coming from Excel.