Zoho CRM for B2C

Zoho CRM for B2C

Hello, 

I am brand new to Zoho and I am not quite sure how to set up the tabs for a B2C environment.  I work at a travel agency and I am confused as to how to set this up. 
Like when a "lead" wants a proposal for example I would convert this lead into a "potential". However, when doing this the info automatically shows in both contacts and potentials.  The best thing would be to be able to have only customers in contacts and not a mix between both potentials and current customers.  I tried to add the drop box menu with the options: customer, potential customer, vendor, other... but when I added potential customer in leads- when I converted the lead it shows as customer in contacts.... Really confusing. Does anybody have ideas on how to organize the tabs for B2C purposes? It would be great to be able to run reports of all customers, all potential customers, all vendors... but it doesnt work when they are all in "contacts".... Suggestions anyone? :-)