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In this tutorial, Kevin explains how to use mail merge for customizing letters. The concept is beneficial for personalizing communications, such as holiday letters to friends and family, where using recipients' first names can enhance the message's personal touch. Kevin mentions that while Christmas letters are a common example, mail merge can also be applied by businesses, such as utility companies, for sending customized correspondence. He acknowledges his employment at Microsoft and prepares to demonstrate the mail merge process on his PC.