Gazelle automatically updates your customers status from Prospect → New → Active based on actions you take (but you can also override this or inactivate a customer record by manually changing a customer's status. Read this article to manually change a customer status).
When a new customer record is created, they are automatically assumed to be a "Prospect" customer. As soon as the first appointment is scheduled the customer status will be changed to "New"
A customers with a "New" status has scheduled an appointment but has never had a completed appointment. As soon as their first appointment is completed the status will automatically change to "Active".
Active customers are regular customers who want your services. The majority of your customers will fall under this category.
Inactive Customers will remain in your your system, but they will not receive any automated messages or reminders. Read this article to permanently delete a client record?