After finishing a closet purge, it's important to have a plan as to where the items you are keeping will live - the options are endless! Hang vs. fold, folding method, separate by item category (blouses, casual tops, etc), separate by outfit, separate by activity (workout, going-out, work, casual), or a combination of all of the above.
Other factors to consider - how much hanging space is available, how much drawer space is available, how often does the laundry get done and by whom, who puts away the clothing, is it important that underwear gets folded, how often do you wear certain items, what needs to be most accessible, how is dry cleaning handled - the list is endless.
This collaborative process is part of what I do when I work with my clients. In the process of asking questions to discover their specific needs, we are able to create a decluttered, organized closet that works for them as well as a space that they have the ability to maintain.