Option 1 sounds like a good idea Option 2 raises a few questions to accommodate users who like to use the one conversation thread instead of a separate conversations per topic (Not sure if answers would be readily available) -
If you marked an entire Conversation as Complete is the other party still able to add to the thread or will they have to start a new conversation for an additional task? Alternatively; if someone adds to the thread of a Completed Conversation - would the completed "tick" drop off to show there is a new action?
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