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In this video, Kevin, a Microsoft employee, explains Microsoft Bookings, a tool enabling customers to schedule appointments with small businesses like dentists, piano teachers, hairdressers, and gym trainers. Bookings creates a dedicated page for customers to select services and desired appointment times. It automatically schedules the appointment and sends reminders to customers via email and text as the appointment date approaches. This functionality isn't limited to small businesses; it can be beneficial for various service-oriented establishments.