Token Optimization

Reduce token usage and costs while maintaining template quality.

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Understanding Token Costs

What Are Tokens?

1 token ≈ 4 characters
1 token ≈ 0.75 words

Example:
"Hello, how are you today?" = 7 tokens

Cost Impact

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Version Comparison

Version	Avg Tokens	Cost/1K Calls	Change
v1	1,200	$2.40	-
v2	800	$1.60	🟢 -33%
v3	600	$1.20	🟢 -50%

Goal: Reduce tokens without sacrificing quality

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Optimization Strategies

1. Remove Redundancy

❌ Before:

You are a helpful customer service agent. 
Please help the customer with their question.
Be helpful and professional in your response.

Tokens: ~20

✅ After:

Help customer professionally.

Tokens: ~4

Savings: 80%

2. Use Concise Language

❌ Verbose:

Please analyze the following data and provide 
a comprehensive summary of the key findings.

Tokens: ~15

✅ Concise:

Summarize key findings:

Tokens: ~4

Savings: 73%

3. Limit Examples

❌ Too Many:

Example 1: [50 tokens]
Example 2: [50 tokens]
Example 3: [50 tokens]
Example 4: [50 tokens]

Total: 200+ tokens

✅ Essential Only:

Example 1: [50 tokens]
Example 2: [50 tokens]

Total: 100 tokens

Savings: 50%

4. Optimize Variable Names

❌ Long:

{!Customer_Full_Name_Including_Title}
{!Product_Name_With_Version_Number}

✅ Short:

{!Customer_Name}
{!Product}

Savings: ~20 tokens per template

5. Remove Formatting

❌ Extra Formatting:

Please note the following:
- Point 1
- Point 2
- Point 3

Thank you for your attention.

✅ Direct:

Note:
1. Point 1
2. Point 2
3. Point 3

Savings: ~30%

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Token Analysis Workflow

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Optimization Checklist

Before deploying:

• Removed redundant instructions
• Used concise language
• Limited examples to 2-3 max
• Shortened variable names
• Removed unnecessary formatting
• Tested output quality
• Verified token count <800
• Compared with previous version

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Token Targets

By Use Case

Use Case	Target Tokens	Acceptable Range
Simple Classification	100-200	Up to 300
Customer Support	300-500	Up to 700
Data Analysis	400-600	Up to 900
Content Generation	500-800	Up to 1200
Complex Reasoning	800-1200	Up to 1500

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Cost Savings Examples

Example 1: Customer Support Template

Before Optimization:

Template length: 450 characters
Avg tokens: 800
Executions: 5,000/month
Cost: 5,000 × 800 × $0.002 / 1000 = $8.00/month

After Optimization:

Template length: 250 characters
Avg tokens: 450
Executions: 5,000/month
Cost: 5,000 × 450 × $0.002 / 1000 = $4.50/month

Savings: $3.50/month (44%)

Example 2: Data Analysis Template

Before Optimization:

Avg tokens: 1,200
Executions: 10,000/month
Cost: 10,000 × 1,200 × $0.002 / 1000 = $24.00/month

After Optimization:

Avg tokens: 600
Executions: 10,000/month
Cost: 10,000 × 600 × $0.002 / 1000 = $12.00/month

Savings: $12.00/month (50%)

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Testing Optimizations

Step 1: Baseline

1. Note current average token count
2. Record output quality
3. Document response time

Step 2: Optimize

1. Apply optimization strategies
2. Test with same inputs
3. Measure new token count

Step 3: Validate

1. Verify output quality maintained
2. Check user satisfaction
3. Calculate cost savings

Step 4: Deploy

1. If quality maintained + cost reduced → Deploy
2. If quality degraded → Revert
3. If minimal savings → Keep current

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Related Documentation

• Testing Templates - Validate optimizations
• Execution History - Track token usage
• Best Practices - Overall guidelines
• Einstein Model Testing - More strategies

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Smart optimization reduces costs by 30-50% while maintaining quality.