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In this YouTube tutorial, the speaker explains how mail merge can be used to merge data from an excel spreadsheet with a template, such as a letter or certificate. They mention the need to save the merged letters as individual files rather than one large file. By using a little trick with the mail merge option, it is possible to save the letters as individual files for send out or printing purposes. The speaker quickly demonstrates the merge process by selecting recipients, using an existing list, and merging the data with the template.