Candidate statuses are an important feature and can greatly help you in the selection process.
You can see a candidate status as a group. Grouping candidates not only helps you keep them organized, but you can then also do things like send an email to all candidates of a group, download the CVs of everyone in the group, compare their answers to certain questions, etc.
For example, you can create a “Reject” status in order to group together all candidates that you don’t think are suited for the job. Then, you can use this status to send a mass rejection e-mail to all these candidates in one go.
Another example is a “High potential” status, which you could use for candidates who you think could be well suited for the position. You can then easily download the CVs of all these applicants with one click, or even download a spreadsheet with these candidates’ answers to all vacancy questions. This allows you to more easily compare candidates and make a better decision.