Google has updated it’s Contacts feature. Based on user feedback, a bunch of new features has been added to Contacts. Improvements like sorting contacts by last name, keyboard shortcuts, and custom labels for phone numbers will provide a better contacts experience. Contacts work a lot more like Mail. Selecting and grouping contacts is now more like selecting and labeling email. The look of Gmail has also been tweaked to make it easier to get to Contacts and Tasks.
Following are some updates to Contacts:
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Keyboard shortcuts works in Contacts.
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Easily sort your contacts by last name.
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Structured name fields to easily adjust name components (titles, suffixes etc).
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Ability to use custom labels for phone numbers and other fields.
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A bigger notes field for contacts.
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Manual and bulk contact merge.
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Automatic saving.
With the improvement of Gmail layout, the Mail, Contacts, and Tasks links have now moved to the top left corner of your account. Now there is a new smaller header area that puts the first message in your inbox about 16 pixels higher on the screen. And Compose mail is now a button rather than a link. The Select All, None, Read, Unread, and Starred links that used to be above your messages are now available as options in a drop-down menu, next to the Archive button.
Source: http://gmailblog.blogspot.com/2010/08/updates-to-contacts-and-slightly-new.html