If there exists $c<1$ such that $\|x_{k+1}-x^*\|\leqslant c\|x_k-x_*\|$, then as you said $\|x_k-x_*\|\leqslant c^k\|x_0-x^*\|$ therefore $x_k\rightarrow x_*$. If such a $c$ doesn't exist, we can't say anything. Indeed if $(x_k)$ converges to $x_*$, then $x_{\lfloor k/2\rfloor}\rightarrow x_*$ but $\|x_{\lfloor (2k+1)/2\rfloor}-x_*\|=\|x_{\lfloor 2k/2\rfloor}-x_*\|$ so such a $c$ doesn't exist for $(x_{\lfloor k/2\rfloor})$ even tough it converges to $x_*$. On the other hand, for any isometry $f:\mathbb{S}^{n-1}\rightarrow\mathbb{S}^{n-1}$, if $x_*:=0$ and $x_k:=f^k(x_0)$ for any $x_0\in\mathbb{S}^{n-1}$, then
$$ \|x_{k+1}-x_*\|=\|x_k-x_*\|=1 $$
even though $(x_k)$ does not converge in general, and never converges to $0$.
Note : Even if $\|x_{k+1}-x_*\|<\|x_k-x_*\|$, it can converge to $x_*$ as seen previously, but it can also not converge to $x_*$. Take $x_{k+1}:=x_*+\left(1-\frac{1}{2^k}\right)(x_k-x_*)$, then $\|x_{k+1}-x_*\|<\|x_k-x_*\|$ for all $k$ but
$$ \|x_k-x_*\|=\|x_0-x_*\|\prod_{i=0}^{k-1}\left(1-\frac{1}{2^i}\right)\underset{k\rightarrow +\infty}{\longrightarrow}\|x_0-x_*\|\prod_{i=0}^{+\infty}\left(1-\frac{1}{2^i}\right)>0 $$
thus $(x_k)$ does not converge to $x_*$.