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Kevin demonstrates how to use mail merge to customize letters for Christmas or other purposes, such as sending personalized messages to friends and family. By using mail merge, you can easily include recipient's first names in the letters, making them more personal and less generic. This feature is also useful for utility companies or any other business that needs to send out customized letters. Kevin, a full-time employee at Microsoft, provides a step-by-step tutorial on how to perform mail merge on a PC.