docs: rewrite Label the incoming message with best practices

docs/4. Product Features/03. Flows/2. Flow Actions/07. Label the incoming message.md

@@ -1,15 +1,42 @@
-> ### **1 minute read                                                                                                                     `Beginner`**
-___
+<h3>
+ <table>
+  <tr>
+    <td><b> 3 minutes read</b></td>
+    <td style={{ paddingLeft: '40px' }}><b>Level: Beginner </b></td>
+    <td style={{ paddingLeft: '40px' }}><b>Last Updated: July 2026</b></td>
+  </tr>
+</table>
+</h3>
 
-**Labelling the incoming message flow action is used to categorize the messages into separate buckets. This helps you capture data points which can be used for creating reports, analytics etc.** 
+**Labelling the incoming message flow action is used to categorize the messages into separate buckets. This helps you capture data points which can be used for creating reports, analytics etc.**
 
-## Video Tutorial
+For instance, if someone chooses English as their preferred language, you can label their message as 'English' and then generate charts for how many people chose English.
 
-<iframe width="800" height="500" src="https://www.youtube.com/embed/Y2KWDO7SfnI" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
+## How it works
+
+This node labels the contact's most recent incoming message - not any message the bot sends. Every time the flow runs this node, it adds the label(s) you choose to whichever message the contact sent last.
+
+Because of this, the node only does something useful if there is a message from the contact to label at that point in the flow.
+
+## Adding the node to your flow
+
+1. Add a `Label the incoming message` node at the point in your flow where you want to categorize the contact's message.
+2. Under `Select the labels to apply to the incoming message`, enter the name of an existing label or create a new one.
+3. Click `Ok` to save the node.
 
-<br />
-<br />
+![Add Labels node showing the label selection field](https://user-images.githubusercontent.com/32592458/218254849-f5049dcb-4c84-4250-b235-efec35a43360.png)
 
-**For instance, if someone chooses English as their preferred language, you can label their message as 'English' and then generate charts for how many people chose English.**
+## Best practices
 
-![image](https://user-images.githubusercontent.com/32592458/218254849-f5049dcb-4c84-4250-b235-efec35a43360.png)
+- Place this node right after a `Wait for Response` node if you want to label what the contact just typed. This guarantees the incoming message being labelled is the reply you're interested in, not an older message from earlier in the conversation.
+- If you add this node without a `Wait for Response` immediately before it (for example, right at the start of a flow, before the contact has said anything), there is no incoming message yet and the label is not applied to anything.
+- You can add more than one label to the same node. If the same message already has a label from an earlier point in the flow, the new label is added alongside it rather than replacing it.
+- Keep label names consistent across flows (for example, always use `English` rather than mixing `english` and `English`) so your reports and BigQuery analytics can group them correctly.
+
+---
+
+## Related video
+
+This video walks through building a full flow and includes an example of using the `Label the incoming message` node partway through - it's a good reference for seeing the node used in context, but isn't focused on this node alone.
+
+<iframe width="800" height="500" src="https://www.youtube.com/embed/Y2KWDO7SfnI" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>