The Concept: Turn the AI From a Magic 8-Ball Into a Strategic Advisor
I’ll never forget the day I found out that one of my books was magic.
I’m talking, real magic.
It all started at 9 AM on a sweltering Friday in July 2000. I was running across the Clemson University campus in my pajamas, trying to make it to my heat transfer exam. It was a class I needed for my engineering major.
Not only was I retaking the class because college life got the best of me the first time around, but I also needed a B on the exam to pass. If I didn’t get that B, I’d have to retake the class a third time!
The worst part?
I was an hour late to the three-hour exam and I wasn’t prepared!
I finally reached the building where they were holding the exam, and I burst through the door out of breath.
The professor looked at me like I was an idiot (because of course I was) and handed me the four-question exam while shaking his head. I headed to my seat and started flipping through the exam. It required me to not only answer the questions but show all my work too!
First question: nope, I didn’t know how to do that. Second question: nope, not that one either. Third question: crap. Fourth question: do I really have to take this class again?
Luckily for me, it was an open book exam, but trying to learn the material in the remaining two hours was obviously impossible.
Speaking of books, I’d bought mine used. You can save hundreds buying used books instead of new ones. But the goal is always to find one without marks. Mine was in pristine condition and didn’t have any pencil marks as far as I could tell.
So I started flipping through it, trying to find the material that might explain how to solve the first question. Flipping, flipping, and flipping some more.
But as I stumbled upon a random page, I noticed something odd.
In my book, where I’d never seen any pencil marks before, was a problem written in the top margin with the full solution worked out step-by-step.
The craziest part?
The problem was the exact same problem as question one on the exam!
If there was ever a time not to look a gift horse in the mouth…
So I hurriedly copied down the step-by-step solution, then moved on to exam question two.
Was it a fluke? Or could lightning strike twice?
I hurriedly started flipping through the book again, looking for question two in pencil left by this angelic being.
As I continued flipping, I passed dozens of pages without any pencil marks; like I said, it was pristine when I bought it used.
But as I turned the page, I found it!
Exam question two.
Written in pencil at the top of a random page in my book.
And… with the full solution written out in detail!
(I felt like running out of the room and buying a lotto ticket at that point.)
I eventually found question three too, but I didn’t have any luck with question four. This left me with about an hour and a half to stumble my way to a solution for the final question.
When it was all over and the professor returned our grades, my exam paper had a big fat B at the top!
This meant I’d passed the class!
I don’t know who was more surprised, me or the professor!
The craziest thing was that those three problems with all the work written down were the only pencil marks in my entire book!
That’s why, to this day, I have never gotten rid of my magic book.
It sits in some box in my attic, because who knows…
Maybe one day I’ll need an answer, and you never know, it might be in my magic book!
In my later engineering classes, I wasn’t so lucky and had to study hard and learn the material. But each exam was the same. The professor always wanted us to show our work.
The reason professors want us to show work is because it clarifies our thinking process, helps with error correction, and can help get the best possible answer.
The crazy part?
It works for AI too! When you get the AI to show its work first, then come to the solution, the answer can be orders of magnitude better than if it didn’t show its work.
This technique is called Chain-of-Thought (CoT) prompting.
Instead of asking AI for a direct answer, you ask it to “think step by step” or “explain your reasoning.” This simple addition triggers something called autoregressive generation in the AI’s output. This leads to dramatically better, more accurate, and more trustworthy results.
Let me show you how it works.
How It Works: Chain-of-Thought (CoT) Prompting
This technique is actually really simple to implement, but it’s incredibly powerful.
Just add a specific phrase to your prompt that makes the AI think aloud.
Example phrases:
- “Let’s think step by step.”
- “Describe your reasoning in steps.”
- “Explain your answer step by step.”
- “Take a deep breath and work through this step by step.”
Let me show you an example of using this technique to build an amazing personalized abandoned cart email sequence.
In the first example, I won’t use the technique. This way, you’ll see what it looks like without it to get a baseline.
AI Prompt
[BACKGROUND INFORMATION]:
Store:
Mindful Modern Home sells eco-friendly home goods.
Customer:
Sarah
Prior Purchases:
Organic cotton towels
Abandoned Cart Contents:
1x Bamboo Sheet Set (Queen) – $189
2x Recycled Glass Storage Jars – $34 each
Cart total: $257
Additional Notes:
She abandoned at shipping calculation ($12 shipping)
[DIRECTIONS]:
Write a 3-email abandoned cart sequence for the customer (each email should be less than 150 words). You are allowed to suggest MINDFUL10 as a coupon code to save 10%. Write based on why the customer might have abandoned their cart, use appropriate psychological triggers while writing, and make sure the three emails are cohesive.
[OUTPUT]:
In this prompt, I gave the AI some basic details about the customer, their cart contents, and the stage of abandonment. I gave the AI permission to suggest a 10% off coupon code.
I also suggested that the AI should figure out why the customer might have abandoned their cart, what psychological triggers to use, and then make sure the three emails work together as a cohesive whole.
Here’s the email sequence the AI wrote:
AI Response
Email 1: “Your eco-friendly essentials are waiting” (Send 1 hour after abandonment)
Subject: Still thinking about those bamboo sheets, Sarah?
Hi Sarah,
We noticed you left some beautiful eco-friendly items in your cart! Your bamboo sheet set and recycled glass storage jars are still there, waiting to transform your home into a more sustainable sanctuary.
We know shipping costs can sometimes catch us off guard. The good news? These items will serve you for years to come – that bamboo sheet set gets softer with every wash and those glass jars will replace countless plastic containers.
Your cart is saved for 48 hours, so take your time deciding.
Ready to complete your order? [Complete Purchase]
Sweet dreams (on bamboo sheets), The Mindful Modern Home Team
Email 2: “Free shipping unlocked for you” (Send 24 hours after abandonment)
Subject: Sarah, we’ve removed shipping costs from your order ✨
Hi Sarah,
Good news! We’re covering your $12 shipping cost because we believe everyone deserves access to sustainable living essentials.
Your bamboo sheets and storage jars represent more than just home goods – they’re steps toward the mindful lifestyle you’re creating. Plus, based on your love for those organic cotton towels, we know you’ll appreciate how these pieces complete your eco-friendly bedroom and kitchen.
Use code MINDFUL10 at checkout for an additional 10% off your order.
Cart expires in 24 hours: [Shop Now – Free Shipping]
Mindfully yours, The Team
Email 3: “Last chance for your sustainable favorites” (Send 48 hours after abandonment)
Subject: Sarah, your cart expires in 2 hours
Hi Sarah,
This is your final reminder – your carefully selected bamboo sheet set and recycled glass storage jars will be released from your cart in just 2 hours.
We’d hate for you to miss out on these sustainable favorites, especially with free shipping and 10% off with code MINDFUL10.
Sometimes the planet-friendly choice is also the best choice for our homes. Your future self (and the environment) will thank you.
[Complete Your Order Now]
If you’re not ready today, we understand. You can always find these items in our collection later.
With gratitude, Mindful Modern Home
So that’s the AI’s response without using this Chain-of-Thought Prompting technique.
I’m not impressed.
It looks like there’s some urgency in the first email, but it’s not very strong. I like that the AI adds the coupon code to the second and third emails. That’s nice. But then the final email doesn’t do much to move the needle.
Overall, I think it might capture some abandoned carts and boost sales, but I think we can get the AI to do a lot better.
Now let’s check out the results when we use Chain-of-Thought Prompting:
AI Prompt
[BACKGROUND INFORMATION]:
Store:
Mindful Modern Home sells eco-friendly home goods.
Customer:
Sarah
Prior Purchases:
Organic cotton towels
Abandoned Cart Contents:
1x Bamboo Sheet Set (Queen) – $189
2x Recycled Glass Storage Jars – $34 each
Cart total: $257
Additional Notes:
She abandoned at shipping calculation ($12 shipping)
[DIRECTIONS]:
Write a 3-email abandoned cart sequence for the customer (each email should be less than 150 words). You are allowed to suggest MINDFUL10 as a coupon code to save 10%.
Before you write the email sequence, think out loud, step by step:
Step 1: Analyze why the customer might have abandoned their cart.
Step 2: Identify psychological triggers that might work for the returning customer.
Step 3: Outline each email before writing them to ensure they are cohesive.
[OUTPUT]:
Notice how I haven’t really added any extra considerations? I just took the analysis about why they might’ve abandoned their cart, the psychological triggers, and cohesive bit, and put it into a Chain-of-Thought analysis.
This forces the AI to answer those considerations out loud, to basically prime itself, before it starts writing.
Let’s see how it changes the result:
AI Response
Let me think through this step by step:
Step 1: Analyze why the customer might have abandoned their cart Sarah abandoned at the shipping calculation stage, specifically when she saw the $12 shipping fee. This suggests price sensitivity or sticker shock at the final total jumping from $257 to $269. She’s clearly interested in eco-friendly products (given her prior organic cotton towel purchase and current cart contents), but the unexpected shipping cost likely made her pause and reconsider.
Step 2: Identify psychological triggers that might work
– Loss aversion: emphasize what she’s missing out on
– Social proof: highlight popularity of abandoned items
– Value reinforcement: remind her of the environmental benefits
– Urgency: limited-time offers or stock concerns
– Cost mitigation: address the shipping concern directly
Step 3: Outline each email sequence
– Email 1 (sent 2 hours later): Gentle reminder with environmental benefits focus
– Email 2 (sent 24 hours later): Address shipping concern with discount offer
– Email 3 (sent 72 hours later): Final urgency push with stock/popularity angle
EMAIL 1: “Your sustainable sleep sanctuary awaits”
Hi Sarah,
We noticed you were creating the perfect eco-friendly bedroom setup! Your bamboo sheets and recycled glass jars are still waiting in your cart.
As someone who appreciates quality sustainable products (love that you chose our organic cotton towels!), you’ll adore how these bamboo sheets feel – incredibly soft yet breathable, and they get softer with every wash.
Those recycled glass jars aren’t just storage solutions; they’re conversation starters about your commitment to reducing plastic waste.
Your items are reserved for the next 24 hours.
Complete your mindful home transformation here: [Cart Link]
Warmly, The Mindful Modern Home Team
EMAIL 2: “We’ve got you covered (shipping included!)”
Hi Sarah,
Still thinking about those bamboo sheets? We get it – shipping costs can be frustrating when you’re trying to make mindful purchases.
Here’s our gift to you: Use code MINDFUL10 for 10% off your entire order. This covers your shipping and then some!
Your cart breakdown:
– Bamboo Sheet Set: $189 → $170.10
– 2x Storage Jars: $68 → $61.20
– Shipping: $12 → FREE (with savings!)
Final total: $242.10 (you save $28.90!)
This offer expires in 48 hours: [Cart Link]
Sweet dreams start with sustainable choices.
The Mindful Modern Home Team
EMAIL 3: “Last call for your favorites”
Hi Sarah,
This is it – your MINDFUL10 discount expires tonight, and we’d hate for you to miss out.
Here’s why hundreds of customers chose these exact items this month:
✓ Our bamboo sheets are our #2 bestseller (customers say they’re “life-changing”)
✓ Those storage jars? Nearly sold out in this size
Your cart total with MINDFUL10: just $242.10
After tonight, these items go back to regular pricing and there’s no guarantee they’ll be in stock.
Ready to complete your sustainable home upgrade? [Cart Link]
Last chance, The Mindful Modern Home Team
WOW!
The result is a night and day difference!
The AI has implemented some classic FOMO, social proof, value reinforcement, urgency, and cost mitigation!
Overall, I think we have a higher chance at recovering those lost sales with an approach that uses Chain-of-Thought prompting.
Also, don’t get wrapped up in this use case example. Chain-of-Thought prompting can work for pretty much any type of prompt you’re having the AI process.
Now let’s talk about some best practices.
Advantages of Chain-of-Thought Prompting
Using this technique has tons of advantages compared to what I’ll call 8-ball prompting. You know, when you get an answer with no work shown.
- Better Accuracy: CoT prompting breaks complex problems into smaller, manageable steps. This helps the model focus and make fewer mistakes.
- Catch Errors Early: When AI shows its reasoning, you can spot flawed logic before you follow bad advice.
- Save Time on Revisions: Better first drafts means you’ll spend less time editing and redoing work.
- Build More Trust: You can confidently share AI-assisted work because you understand the strategy behind it. The reasoning is clear, so you know exactly how the AI got its answer.
- Handle Complex Tasks: It’s perfect for multi-step challenges like planning campaigns, optimizing funnels, or mapping customer journeys.