I wrote yesterday how Continental Airlines lost my luggage Sunday night on my trip from Tulsa to Cleveland and yet managed to salvage their reputation by accepting responsibility, apologizing quickly, detailing how they were going to solve the problem and then following through and delivering my bag to my house.

But I got to thinking last night how they could have turned their failure into a memorable example of their customer commitment with the application of imagination and creativity.

The steps I detailed yesterday are the customer service minimums necessary to assuage an aggrieved customer. But what if you want to do more? How can you transform a customer service mishap into a distinctive, memorable, brand building event?

Let’s consider Continental’s dilemma: they lost my bag and must return it. So, how could they transform this simple logistical exercise into a memorable experience? Off the top of my head I can think of several.

1. Provide me with text messages, Tweets or email notifications when my bag makes it onto the plane, when it lands, when it’s put in the delivery van and when it’s delivered. Every bag is barcoded and it would not be difficult to extract this information along the bag’s route and keep me posted regarding its progress home.
2. When delivering the bag, put a special luggage tag on the bag, preprinted with name, address and frequent flyer number that connotes special bag handling treatment on future flights. The tag could instantly communicate to baggage handlers that this customer was inconvenienced before, let’s make sure this passenger’s bag is never mishandled again. It would be nice to know that my bag was being treated like a VIP on future trips.
3. How about popping a free upgrade into my frequent flyer account for use on my next flight to compensate me for my inconvenience?
4. Attach an envelope to the returned bag with coupons for free drinks or movies on my next flight. The envelope would be designed to stay attached to the bag so that I would have them in hand the next time I went to the airport and checked in.
5. Send me an email apologizing for the airline’s error and providing a link to an assortment of perks that I can print or send to my smartphone to use on my next flight.

Instead of putting the failure behind them and forgetting about it, they should use it to provide continuous reminders of their commitment to passenger comfort and service. Celebrate the mistake, bring it front and center, let other Continental staff members recognize those passengers that have suffered from less than stellar service so they can make up for it. Track the mistakes, publish them, and make sure your staff is aware of your trends and rewarded for eliminating poor service.

Or, they could follow United’s example and just break my stuff. Any other ideas?