Klopp says the Reds did not do enough to punish Zinedine Zidane’s men at the Estadio Alfredo Di Stefano.
Real Madrid took advantage of Liverpool’s poor start to the game to establish a commanding lead in the first half.
Vinicius Junior scored the first goal of the game after latching onto a defense-splitting pass from Toni Kroos on 27 minutes before Marco Asensio doubled the hosts’ advantage on the 36th minute mark.
Mohamed Salah cut the deficit for the visitors just six minutes after the break, but Los Blancos restored their two-goal cushion midway through the second half courtesy of Vinicius.
"If you want to go to the semi-final, you have to earn the right to do so. We didn't do that , especially in the first half. The only good thing I can say, apart from the goal, is it's only the first half of the tie,” Klopp said after the game.
"We just didn't play good enough football to cause Real Madrid more problems.
"We made it too easy for them. These mistakes can happen. We didn't deserve a lot more but that one goal and the second half was OK. It gives us a lifeline."
Klopp reacted to Liverpool’s lethargic first half display by substituting Naby Keita three minutes before the break
"It's not a big story. I don't like it. He wasn't the only one. It was tactical. I could have done a few more changes in that moment,” Klopp added.
Liverpool will now need another Anfield miracle in order to progress to the next round and the German coach has explained what his side need to beat Real Madrid.
"Intensity with the ball especially. You cannot defend the speed of Real Madrid when you give them the ball at the wrong moments,” he said.
“If you lose ball in the right moment it's OK. We lost the ball, so many easy passes. You have really quick and world class players in one on ones. We have to be better in possession."
