There are "many" advantages of using tags including:
1. Color-code emails, task lists, contacts...ect
2. Track important events, critical emails, tasks...ect
3. Search for a tag and all messages with that tag will be displayed, no matter what folder you have them in.
4. You can attach multiple tags to the same email message, contacts....ect
You can create as many tags as you would like. Displayed above are just a few advantages as there are "many" more.
Creating a Tag from the Overview pane:
1. Locate New, in the Overview Pane, Right click, Select New Tag.
2. Choose a name for the newly created tag in the Tag name field and select a color.
The new tag will now be listed in the Overview pane. You can now apply this to any message, contact or calendar entry. You can also create and assign tags by right.