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In this video, Kevin explains how to use mail merge for customizing letters. He highlights the importance of personalization, particularly when sending out letters during occasions like Christmas, where including recipients' first names can make the message feel more personal and engaging. Kevin notes that this technique is also useful for businesses, such as utility companies, needing to send customized correspondence. He introduces the tutorial with a disclosure about his employment at Microsoft and prepares to demonstrate the mail merge process on his PC.