Tags are a quick and flexible way to label and group contacts, leads, emails, organizations, opportunities, communities or projects. 

After you add Tags, you can use them for searching and filtering to help you stay connected with your relationships.
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Contacts can be tagged by tapping the Tag icon in the Relationships Tab. 

When you tap on Tag, a new screen will open. Here you can enter your Tag Name, or select from your list of already-made tags. This will be immediately applied to this contact.
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Tags can also be added when creating or editing a contact.