What is the difference between labels in Gmail and Folders in Outlook?

Labels in Gmail can be used just like Folders in Outlook, where you create a label and drag an email into that label to file it away. Using labels in this basic manner means you are not taking advantage of the wonderful ways labels can be used to keep your inbox organised. 

One example of how labels beat folders with email management is the ability for a single email to have multiple labels attached. Which is helpful when a single email covers a multitude of topics. 

In Outlook, you can only file an email in a single folder - making discoverability when referencing the email harder. While in Gmail, you can apply multiple labels to an email, making referencing and discoverability easier.

How to create labels in Gmail

Creating a new label in Gmail.

Gmail makes it easy for you to create labels as needed. Down the left-hand side navigation bar, look for the Labels section and click the + icon to create a new label. Once you have created a label, hover your mouse over the label's name and click the three-dot menu icon. You'll then see an option to set the colour for that label.

How to start using labels

Now you have created a few labels; you can start filing emails into those labels by dragging the email from your inbox to the label you want it to be filed under. 

However, if you want to take advantage of multiple labels attached to a single email, drag the labels to the email, either while it is sitting in your inbox or while you have it open - then archive the email. The email will vanish from your inbox and appear under your selected labels.

You could create a label called "Follow Up". Apply that label to any email in your inbox waiting for information or needing a response. Once the follow-up has been completed, you can remove that label and archive the email.

Automatically labelling emails

Using filters (rules) in Gmail, you can create a filter that will automatically assign a label to emails. 

An example would be a filter that looks for emails that contain the word "Invoice." When an email arrives containing that word, you could have a gold-coloured label called "Accounts" automatically applied. The label helps this email to stand out in your inbox and also automatically puts the email under the "Accounts" label.

Creating a filter looking for emails containing the word “invoice” and automatically applying a label.

Another example would be creating a filter for business leads that come through the contact form on your website. When a new lead email comes in, you could have a label called "Leads" automatically applied. 

Setup filters sound complicated, but it is easy, and Google provides this helpful guide. 

Follow Up, Waiting and Read Through!

You may have heard about inbox zero, but only a few have reached it. With labels, it is possible to experience the nirvana of inbox zero! Jeff Su, one of our favourite Gmail productivity experts, has this video showing you how to set up your Gmail inbox using labels and multiple inboxes to reach inbox zero.