Reasons already cited include a lack of attack advertisements, the campaign's length of eight weeks, a failure to combat Labor's "Mediscare" campaign, a "jobs and growth message" that failed to resonate with average voters, the superannuation changes, and even that the election was held in winter.

Labor, which won a net extra 14 seats at the July 2 election, will also conduct a review, but a source said it would not be a root-and-branch look into what went wrong, such as that being conducted by the Liberals, but a low-key, technical look at what could be improved.

Mr Turnbull promised the review last month when he faced a restive party room that has been reduced to the bare lower house majority, 76 MPs, and 30 Senators, a loss of three.

Significant criticism has been directed at Mr Turnbull, Liberal Party federal director Tony Nutt and chief pollster and strategist Mark Textor.

Addressing the meeting, Mr Nutt implied the Coalition would have lost had it stayed with Tony Abbott as leader.

Mr Textor also defended the focus on jobs and growth, saying the internal polling showed there was "daylight" between the economy and jobs and any other issue.

Mr O'Farrell has a solid track record on party reform and a sound understanding of Western Sydney, where the Coalition was routed. Tasmania and South Australia will also be strong areas of focus.

While the review is expected to take some months, pressure is building on Mr Turnbull to back reforms of the Liberal Party's NSW division to enable candidates to be pre-selected by a plebiscite of local members, as the Liberal party does in most other states, rather than a limited process controlled by factional power brokers.

Mr Abbott, who is passionate about the change, has ramped up his push following the election loss. Mr Turnbull supports the changes but has not been very vocal.

NSW premier Mike baird reiterated his support on Tuesday, saying it was a fundamental form of democracy that the party should embrace.

At the forthcoming NSW Liberal state council meeting, proponents of change will move a resolution which, if it gains over 50 per cent support, will be used to pressure party bosses to change the constitution to enable plebiscites.