We recommend that you should create a Master Group of all your Email contacts and store all your email contacts in that Master Group. You should create a separate Group only if your Contacts relate to different Independent projects or Businesses. 

In order to segment/Bifurcate, your contacts into various sets make use of "TAGS". 

When you upload your contacts into a group, you can add "Tags" to that contact which will help you segment your group into various "Tags". You can attach multiple tags to a single contact also. You can refer to the Below example to Understand Tags Better:

Example:

Suppose that you own a company name "ABC Ltd" and you have 100 employees. Then Instead of making multiple groups for different departments, you should create a Single group with Name "ABC Ltd". And you should add your employee's contacts in the same groups and add "Tags" of department like "HR", "Support", "Admin", "Management", "Tech_team", etc. Similarly, you can also add your customer's data in the same group and add tags according to their interests and behaviours.

Benefits of Using Tags Instead of Multiple Groups:

1. In this way, your contacts will not be duplicated, because a single employee might belong to Multiple departments, so by tagging that single contact will have Multiple Tags of the department. 

2. This will help you maintain a better contact rating and reduce your overall subscriber count and if you are in Subscriber based Billing then will help you in reducing your billing also.

3. Our system builds and maintains a contact reputation system which automatically manages your overall Email sending speed, so if you are adding an email id every time with a new group then that contact doesn't have any reputation as per our system, and thus your sending speed is not optimised, so if you are updating the same in your existing group then if you have already sent an email to that contact and they have interacted then it helps in Improving and increasing your sending speeds.

4. Tags, help in creating better segments which help in creating better automated emails