Contact types categorize your person contacts (eg. Client, Prospect, Deceased Client, etc) and are distinct from the more granular “tagging” of contacts.

The "Contact Type" field is only available on People contact records. 

How to Customize Contact Types

Admin users can add, edit, delete, and reorder contact types.

• Deleting a Contact Type: If you have a contact type associated with a contact, you will be prompted to change the type to another type before deleting it.
• Reordering Contact Types: You can drag and drop items inside the list above to specify the top-down order you would like.

To manage contact types:

1. In the top-right corner, click the three stacked dots (⋮) and select “Settings.”
2. Select "Customizations" in the sidebar.
3. Click on “Contact Types” under “Workspace Customizations.”