Reservation tags
Reservation tags are those tags applied to customers based on their reservations. These are automatically added next to the customer's name on the roster.
User Tags
User tags are applied to customers based on their habits or characteristics. They must be manually added to a customer's profile. Instructions on how to do so are here.
These include:
If you are running a special promotional deal to someone with a specified tag on your website's buy page, those without the specified tag will not see the promotional offer.
If a customer attempts to utilize a discount code in their cart and does not possess the appropriate tag, the discount will not be applied to their cart.