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Mastering Prompt Engineering: A Guide for Everyone

Large Language Models (LLMs) are no longer experimental or limited to research labs.

They’re now embedded in products, powering customer service agents, writing assistants, data extraction systems, and even legal or financial workflows. But here’s what separates impressive from average: prompt engineering.

Despite what it looks like on the surface, prompting isn’t just about asking the model to “write me an email” or “summarise this PDF”. The difference between a prompt that works once and a prompt that works reliably across hundreds of users, edge cases, and languages — that’s engineering.

This guide will take you through the full stack of prompt engineering: from model configuration to tactical prompting methods, and real-world considerations for scalable AI agent deployment.


What is Prompt Engineering?

What is Prompt Engineering AI and How it Works: A Step-by-Step Guide

LLM runs on a simple principle: next-token prediction. The model takes in a sequence of words (tokens) and predicts the next one, again and again, until it hits a stop condition.

So, when you give it a prompt like:

“Summarise this article in three bullet points:…”

it’s not “thinking…” or “understanding” like we human do. It is just completing text based on patterns it has seen during training.

Prompt engineering is the process of designing that input text to guide the model toward a useful, accurate, and repeatable output. It’s part instruction manual, part design system, and part debugging tool.

Done right, prompting can:

  • Reduce hallucinations
  • Enforce output formats (JSON, XML, SQL, Markdown)
  • Improve tone, coherence, and factuality
  • Handle edge cases gracefully
  • Cut down on post-processing and API retries

AI Output Configuration: How Settings Change Results

Choosing the right model is just the first step. Before writing prompts, it’s important to adjust the model’s settings. On our platform, these five settings matter most—they shape how the AI understands, retrieves, and responds to your input:

Base Prompt (Bot Persona)
Defines the personality and tone of the AI.
Set a clear persona for more consistent and tailored responses.
Restrictions
Sets boundaries on the AI’s behavior and responses.
Use to avoid certain topics or ensure safe, appropriate replies.
Temperature
Controls how creative or focused the AI is.
Use 0 for predictable tasks (like summaries), 0.7–0.9 for more open-ended ones.
Knowledgebase Nodes
Connects the AI to specific sources of truth.
Add relevant nodes so the AI can retrieve and reference trusted information.
Previous Message Limits
Controls how many past messages the AI can “remember.”
Increase for better context, decrease for speed or short interactions.

Optional Settings (Good to Know)

While not required, these additional settings can help you fine-tune responses even more, especially for advanced or creative use cases:

Top-K
Limits choices to the top K most likely next words.
Keep under 50 to reduce randomness and keep responses focused.
Top-P (nucleus)
Chooses from the smallest set of words that cover a probability threshold.
Use 0.9–0.95 for more natural, creative responses.
Max Tokens
Limits the length of the AI’s response.
Lower values help control output length or cost in workflows.

⚠️ Note: If temperature is set to 0, both Top-K and Top-P are ignored. The AI always picks the most likely next word (greedy decoding).


Common Prompting Techniques (With Real Examples)

Each task requires a slightly different prompting strategy. Here’s a breakdown of the most effective approaches used in production LLM systems.

1. Zero-Shot Prompting

Zero-shot means giving the model just the task — no examples, no context.

Example:

Classify this review as POSITIVE, NEGATIVE or NEUTRAL:  
"The product arrived late, but the customer support team was helpful."

Output: NEUTRAL

Best when the task is familiar to the model, or latency is a concern.


2. Few-Shot Prompting (1-5 Examples)

By providing examples within the prompt, you teach the model a pattern — useful when the task is nuanced or less common.

Example: Pizza order parser

I want a small pizza with cheese, tomato sauce and olives."

{
  "size": "small",
  "type": "normal",
  "ingredients": [["cheese", "tomato sauce", "olives"]]
}

Now parse:
"I want a large pizza, first half mushrooms and cheese, second half tomato and ham"

Output:

{
  "size": "large",
  "type": "half-half",
  "ingredients": [["mushrooms", "cheese"], ["tomato", "ham"]]
}

Few-shot prompting is extremely effective for structured output like JSON, XML, or SQL.


3. System / Role / Context Prompting

These control the “voice” and perspective of the model.

  • System Prompting: Sets the task scope (“You are a data cleaner that outputs CSV.”)
  • Context Prompting: Adds relevant info before the task (“Here’s the glossary of company terms…”)
  • Role Prompting: Assigns a persona (“Act as a career counsellor specialising in IT roles.”)

Example:

You are an expert reviewer. Classify the sentiment and return in JSON format:
Review: "Heir is a beautifully haunting film. I couldn’t stop thinking about it."

JSON schema:

{
  "movie_reviews": [
    {
      "sentiment": "POSITIVE",
      "name": "Heir"
    }
  ]
}

4. Chain-of-Thought Prompting (CoT)

For tasks that need logic or reasoning, CoT forces the model to show its steps.

Without CoT:

I’m 20 now. When I was 3, my partner was 3x my age. How old is my partner now?
→ 63 (Wrong)

With CoT:

Let’s think step by step…
→ My partner was 9 when I was 3. That’s a 6-year difference. I’m 20 now, so they’re 26.

✅ Correct answer: 26


5. Step-Back Prompting

This technique prompts the LLM to first consider a more general question related to the specific task. The answer to this general question is then fed back into a subsequent prompt for the specific task.

This encourages the LLM to access relevant background knowledge and reasoning before tackling the problem, potentially leading to more accurate and insightful responses.

Example Flow:

  1. Step-Back Prompt: “Based on popular first-person shooter action games, what are 5 fictional key settings that contribute to a challenging and engaging level storyline?”
  2. Model Generates Settings.
  3. Final Prompt (incorporating step-back output as context): “Context: [List of generated settings]. Take one of the themes and write a one paragraph storyline for a new level of a first-person shooter video game that is challenging and engaging.”

This process can help improve accuracy and mitigate biases by focusing on underlying principles.


6. Self-Consistency & Tree-of-Thoughts (ToT)

Both Self-Consistency and Tree of Thoughts (ToT) build on the idea of prompting models to reason step by step, but they take different approaches to improve accuracy and problem-solving.

  • Self-Consistency improves accuracy by generating multiple answers to the same question, each using slightly different reasoning (usually by adding some randomness with higher temperature).

    Then, it picks the answer that shows up the most. Think of it like asking a group of people and going with the most common response. It’s a great way to reduce mistakes, but it does take more time and computing power since it runs several versions of the answer.
  • Tree of Thoughts goes beyond that. Instead of just trying a few different answers and picking one, it explores many possible reasoning paths like branches on a tree.

    At each step, it looks at different directions the reasoning could go, then follows the most promising ones. This is especially useful for more complex problems where there’s no clear straight path to the answer.

7. ReAct Prompting

Used when the model needs to both think and act — like planning a search, making API calls, or manipulating data.

Example task: “How many kids do the members of Metallica have?”

  • Model reasons → identifies names
  • Acts → fetches data for each
  • Aggregates → gives final answer

8. Automatic Prompt Engineering (APE)

Writing effective prompts can be time-consuming. APE aims to automate this process. One approach involves using an LLM to generate multiple prompt candidates for a given task.

These candidates are then evaluated (e.g., using metrics like BLEU or ROUGE), and the best-performing prompt is selected. This iterative process can help discover effective prompts without extensive manual effort.

Example Flow (Generating chatbot order phrases):

  1. Prompt to LLM: “We have a band merchandise t-shirt webshop, and to train a chatbot we need various ways to order: ‘One Metallica t-shirt size S’. Generate 10 variants, with the same semantics but keep the same meaning.”
  2. LLM Generates Variants: Provides a list of different ways to phrase the order.
  3. Evaluate Variants: Score the generated prompts based on their effectiveness.
  4. Select Best Prompt: Choose the prompt that performed best for training the chatbot.

Best Practices for Prompt Engineering

Becoming proficient in prompt engineering requires experimentation and following some key guidelines:

  • Provide Examples (One-Shot/Few-Shot): This is arguably the most important best practice. Examples are powerful teaching tools that show the model the desired output structure, style, and tone.
  • Design with Simplicity: Keep your prompts concise, clear, and easy to understand for both you and the model. Avoid jargon and unnecessary information. Use strong verbs that describe the action you want the model to perform.
  • Be Specific About the Output: Clearly define the desired output format, style, length, and content. Specificity helps the model focus and improves accuracy.
  • Use Instructions over Constraints (Generally): Focus on telling the model what to do rather than what not to do. Positive instructions are often more effective and encourage creativity within defined boundaries. Constraints are still useful for safety or strict formatting requirements.
  • Control the Max Token Length: Manage the length of the generated response either through model configuration or by explicitly requesting a specific length in the prompt.
  • Use Variables in Prompts: For reusability and dynamic input, incorporate variables into your prompts. This is especially useful when integrating prompts into applications.
  • Experiment with Input Formats and Writing Styles: Different formulations of the same request can yield different results. Try posing your request as a question, statement, or instruction, and experiment with different tones and styles.
  • For Few-Shot Classification, Mix Up Classes: When providing few-shot examples for classification tasks, randomize the order of the classes to prevent the model from overfitting to a specific sequence.
  • Adapt to Model Updates: Stay informed about updates to the models you use. Newer versions may have different capabilities or require adjustments to your prompts.
  • Experiment with Output Formats: For non-creative tasks like data extraction, consider requesting the output in structured formats like JSON or XML. This provides numerous benefits, including consistency, reduced hallucinations, and easier parsing.
    • JSON Repair: Be aware that truncated JSON output can be invalid. like json-repair can help fix malformed JSON.
    • Working with Schemas: Use JSON Schemas to define the expected structure and data types of both your input and desired output. This provides a clear blueprint for the LLM, improving accuracy and understanding of relationships between data points.
  • Experiment Together: Collaborate with others on prompt design. Different perspectives can lead to more effective prompts.
  • CoT Best Practices: For Chain of Thought, ensure the final answer is clearly separated from the reasoning steps. When using CoT for tasks with a single correct answer, set the temperature to 0 (greedy decoding).
  • Document the Various Prompt Attempts: This is crucial for learning and iterating. Keep a detailed record of your prompts, including the goal, model and configuration used, the prompt text, and the resulting output. This documentation helps you track progress, debug issues, and adapt to future changes. A simple table or spreadsheet can be very effective.

Real-World Application: How Businesses Use Prompting Today

Optimising Prompts for better AI performance - Realworld Examples

Prompt engineering isn’t confined to labs or hackathons — it plays a critical role in real-world business operations. Whether it’s in customer support, internal tools, or sales automation, the quality of prompts directly shapes how an AI agent behaves.

1. Customer Support: Beyond Polite Replies

Let’s say a user sends this message via WhatsApp:

“Need a refund. Got the wrong size.”

Now compare two approaches:

  • Basic prompt: Handle the refund of the user.
  • Well-engineered prompt:

You are a support agent. Ask the user for the order ID. Confirm the reason for refund. Offer options for refund or exchange.

The second one provides structure, tone, and a flow — reducing back-and-forth, ensuring a smoother experience.

2. Product Recommendations That Convert

Prompt engineering also enhances the relevance of suggestions:

  • Weak prompt: You will Recommend something based on purchase: {{purchases}}
  • Improved prompt:

Act as a shopping assistant for an online store. Based on user's last 3 purchases and wishlist, suggest 2 complementary products under $100.

----
last 3 purchases: “{{purchase}}”
wishlist items: “{{wishlist}”

You move from generic advice to contextual, value-based upselling.

3. Internal Workflows: Accuracy Over Creativity

In operational use cases like invoice parsing, accuracy is more important than originality. Prompting must be strict:

Extract invoice number, total amount, and due date from the uploaded document. Return output in valid JSON.

This clarity ensures the model doesn’t hallucinate or drift from format.

4. Lead Qualification & Routing

For sales agents prompt like this for lead qualification:

You are a SaaS product advisor. Ask the user about their company size and use case. If the company has over 50 employees, mark them as Enterprise.

This reduces manual hand-offs and keeps pipelines clean.

Across all these applications, one pattern holds true: vague prompts lead to vague outputs. Whether you’re a business owner, developer, marketer, or CX manager. prompt design is no longer optional — it’s a key operational skill.


Conclusion

Prompt engineering is how you turn AI from a demo into a dependable tool. It’s not about getting the model to respond — it’s about getting it to respond the right way, every time.

With well-structured prompts, you can:

  • Reduce errors and hallucinations
  • Save time on back-and-forth and post-processing
  • Build AI agents that handle support, sales, and operations reliably
  • Maintain consistency across teams and use cases
  • Scale faster without adding complexity

Whether you’re working on internal tools or customer-facing agents, clear prompting is the difference between AI that works and AI that breaks.

It’s how you ship faster, reduce friction, and stay in control — without writing a single line of code.

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Neha
April 4, 2025
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