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In this video tutorial, Kevin explains how to use mail merge to customize letters. He emphasizes the importance of personalization, especially when sending letters to friends and family, such as during the Christmas season, to avoid generic messages. Mail merge allows users to insert specific details, like first names, into letters, making them feel more personal. Kevin also mentions that this tool can be beneficial for various organizations, such as utility companies, that need to send customized correspondence. He notes that he works at Microsoft and is ready to demonstrate the mail merge process.