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Kevin explains how to use mail merge to customize letters for various purposes, such as sending personalized Christmas greetings to friends and family. By using mail merge, you can customize the greeting in each letter with the recipient's first name to make it more personal and avoid generic messages. This feature is useful for utility companies and others who need to send out customized letters. Kevin, a full-time employee at Microsoft, demonstrates how to do a mail merge on a PC in this tutorial.