Springboks coach Allister Coetzee said his team's improved performance against the All Blacks at on Sunday morning (NZ time) proved they were on an upward path and growing as the season progressed.
Humiliated 57-0 at Albany last month, South Africa were a different beast in Cape Town, as the All Blacks claimed a narrow 25-24 win at Newlands Stadium.
"I feel sorry for the players," Coetzee said. "They played their hearts out there and we just came up two points short - it is disappointing."
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"Our performances this season have showed that our processes are on track.
"We just needed two points. We are heading in the right direction.
"In both matches against Australia, we were in it and could have won it, but did not. The 57-0 defeat in Albany was not going to define us."
The All Blacks were ahead 8-3 at the break, but the Springboks took the lead early in the second half.
New Zealand then scored an intercept try and soon after, the Springboks conceded another three points, when Damian de Allende was red-carded for a late tackle on Lima Sopoaga. A late converted try by Michael Marx had the Springboks trailing by one, but they ran out of time.
Despite the loss, Coetzee was proud of the way his team fronted against the world champions.
"The players are enjoying playing for the Springboks. They have a massive work ethic.
"We can fix some things, like the scrum, but working for the mate next to you - that is something you cannot coach and that makes me so proud to see how they play for each other."
"We had them under pressure at times, but you cannot give the ball away against New Zealand. We understand what we do when we do it.
"We kicked well, we only had one contestable that did not work out and in the end, we were two points short."
The 54-year-old also claimed the match was proof that the Springboks are on the right track for the 2019 Rugby World Cup in Japan
"For 2019 [Rugby World Cup], we need world-class players. Guys like [prop Steven] Kitshoff, [hooker Malcolm] Marx, [lock] Eben [Etzebeth], they have played like world class players all year.
"That is what we are looking for.
"We scored a maul-try with 14 men on the field against the best team in the world - those things build belief. Compared to 2016, we have had a proper season in 2017 and have been able to plan properly.
"The year is not over - we still have four matches left and will continue to seek improvement in those."
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