"Victory could have been ours. We are aware the win was within reach."
Head coach Gregor Townsend expressed pride in Scotland's display against New Zealand but felt deflated by a seventeen to twenty-five defeat at Murrayfield.
Scotland trailed 17-0 at the interval, only to fight back and draw level on the hour.
However, the All Blacks, who had multiple members sent to the sin bin, struck late through Damian McKenzie to deny Scotland the chance of a first victory in this fixture.
"I feel let down first of all, because the hard work that went into that latter period performance was all character," Townsend stated.
"We needed to push forward when it got to seventeen all and there were a few big moments that swung New Zealand's way.
"Outstanding second half, we showed our true selves today and we probably showed who we are by failing to secure the win as well.
"There's growth in this team and we must win those crucial points when the game is there for us.
"Aspects of that game show we are up there with the top sides in the world. We just must make that next step."
"Teams get fatigued when you apply pressure," said Townsend, who has now lost three home Tests against the All Blacks as manager - all by single digit margins.
"I'd love to be facing New Zealand again soon. We play Argentina and we must put in what we have gained.
"This is the first time this team has been united since the tournament. To get that unity immediately is challenging and to see it develop during the game is positive.
"But it's so disheartening with that effort that we didn't get a win.
"It's the closest we've been to victory, I believe. We controlled the later stages, territory, intensity, skill. We've not achieved that against New Zealand in our history and we are improved for the experience.
"Our journey doesn't stop today. We have a crucial game next week and more important games to come in the Six Nations."
Scottish leader Sione Tuipulotu described the defeat as "bittersweet" and stressed the importance of a victory against Argentina, having opened the fall matches with a historic result against the United States.
"I told the boys we needed a response at half time," he said. "We could surrender or decide to go for it.
"We had no downside and all to play for.
"It is essential we recover for next week because Argentina aren't going to make it any easier."
