If you choose to add people from your address book or “Contacts” folder to your contact group, the “Add Members” window opens. Step 3: Select the “Contact Group” tab and click the “Add Members” button in the “Members” group. Step 2: Enter a name for your new contact group in the “Name” field. You can find this button in the “New” group. Step 1: Select the “Contacts” section in Outlook and click “New Contact Group” on the “Home” tab. If you’re using Outlook 2010, follow these steps to create a new distribution list in Outlook.