# Using Tags to Label Contacts

Tags are labels you can attach to contacts to keep track of their status or behavior. For example, you might tag a contact as "Interested," "Booked," or "Not Interested."

Tags are especially powerful when combined with your AI bot - you can set up rules so the bot automatically tags contacts based on how a conversation goes. Tags can also trigger actions in other tools you use (through webhooks - automatic notifications sent to external apps) and can move contacts through your deals pipeline automatically.

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## Why Use Tags?

* **Track conversation outcomes** - Know at a glance which contacts booked an appointment, showed interest, or need follow-up.
* **See tags at a glance in the contacts table** - Tags appear as a column in the contacts table, so you can quickly scan and identify tagged contacts without opening each one.
* **Filter and segment contacts** - Find all contacts with a specific tag to send them targeted messages.
* **Automate workflows** - When a tag is applied, DM Champ can notify your other tools automatically (for example, add the contact to your CRM or send them an email).
* **Trigger deal actions** - Tags can automatically create deals or move existing deals to a different stage in your pipeline. For more on this, see [Sales Pipeline](https://help.dmchamp.com/deals/sales-pipeline).

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## How to Create a Tag

1. Click **Settings** in the left sidebar.
2. Click **Webhook** in the settings menu.
3. Scroll down until you see the **Tags** section.
4. Click the icon next to **Tags** to open the Tags management page.
5. Click **Add Tag**.
6. Enter a **name** for your tag (for example, "Booked" or "VIP Lead").
7. Optionally, check the box to **have the AI generate a conversation summary** when this tag is assigned. This gives you a quick recap of what was discussed.
8. Click **Save**.

Your new tag is now available to use in campaigns and can be assigned to contacts manually or automatically by your AI bot.

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## Next Steps

* [Creating a Campaign](https://help.dmchamp.com/campaigns/creating-campaigns) - Learn how to set up tag triggers so your AI bot tags contacts automatically.
* [Webhooks](https://help.dmchamp.com/integrations/webhooks) - Connect tags to your other tools for automated workflows.