This article deals with the impact on customer loyalty through the implementation of customer co-creation campaigns in the beauty industry, also referred to as the cosmetic industry; while additionally featuring central points that add to the ability and willingness of a customer to partake in these co-creation campaigns. Co-creation refers to the practice deviced by organizations to team up with their stakeholders during the planning, advancing, and implementing stages of their products and services. “It replaces the hierarchical approach to management and the linear approach to innovation, affording all stakeholders the possibility to influence and bring forth meaningful and relevant solutions in a collaborative environment” (Kirah, A 2009). An exploratory survey was conducted to collect data from 229 respondents, through questionnaires. All the respondents were users of cosmetic products, irrespective of gender; living in the cities of Bangalore and Mysore. Mean, Standard Deviation, Correlation and Factor Analysis were used to analyse the acquired data, and study the outcomes. The findings of the study suggest that the customer co-creation campaigns have a favorable impact on customer loyalty, ultimately resulting in higher customer retention rates. The study also confirms various factors contributing to a customer’s participation in the co-creation campaign.