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Our data seems mostly correct, but there are some names that are either blank or are 2 random letters. We would like our email to start with "Dear _Salutation" but want that field to hide if the name is less than 3 characters, or is blank altogether. Appreciate any tips.

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I would have have a look at IIF in Ampscript, if I were you. E.g:

%%=IIF((length(@name)>2),@salutation,’’)=%%

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