Problem with tracking contact using CRM Outlook client

The error
After clicking the “Track in CRM” button to synchronize a contact to CRM from Outlook, the following error came up:

…cannot link this item to Microsoft Dynamics CRM. Synchronization with this record or activity type has been turned off.

How to fix it

1. Select the “CRM” menu
2. Select “Options…”
3. Select the “Synchronization” tab
4. Make sure the “Contacts” check box is ticked