The investors who comprise the emerging affluent segment of the market are very diverse–in terms of their net worth, risk tolerance, financial goals, and a myriad of other characteristics. Because of this diversity, in order for firms and advisors to effectively service this market they must perform some level of segmentation. There are many ways to segment any group, and this is especially true of this market. The methods employed by players in this market will depend on the firm and their advisor force, as well as on the construct of their existing and desired client base.

Though differences will exist between factors considered, weightings applied, and techniques employed, there are some commonalities that persist among effective segmentation strategies. Foremost, investor segmentation is a strategy–not just an occurrence. The investor segmentation methodology must be defined, constructed, deployed, and promoted via a top-down initiative. If a methodology is employed by only one group, the question arises as to who services all other investors who fall outside of this group. Thus, most methods dictate what segment the firm or individual groups will pursue and determine what is to be done with the "leftovers". Second, effective segmentation methodologies are revisited periodically–it is not a one-and-done exercise. The financial services industry is not stagnant, and the segmentation methods employed by firms cannot be. Markets change, firms redirect their efforts, and advisor migration patterns alter. Thus, segmentation methods must respond to these dynamics.