Smith said the Highlanders did not want to go down without firing a shot on Saturday night but the opposition just did not let them get anything going.
"We have got to give a lot of credit to how the Crusaders played. They played really smart and just the way they used the ball, and ... their kick and go tactics," Smith said.
"I don’t think our discipline was where it needed to be. When you’re playing a team like the Crusaders you have to be really on your game. You just can’t let them get into your zone by giving away penalties."
The Crusaders’ kicking game was spot on and it was a difficult night for the Highlanders back three.
"But it was the same for both teams and they just adapted way better than we did."
The Highlanders style of moving the ball quickly when it is a chance — easy to do in a covered stadium — was not an option in the windy, greasy conditions of Saturday night.
"We had a plan and we wanted to execute that but through a mixture of things, discipline and not quite being accurate enough in our detail ... but they fully deserved the win."
He said there was always going to be a lot of kicking in the greasy conditions and the Crusaders kicked well.
The Highlanders still had had a good season, he said and it was great to have plenty of Highlanders fans at the stadium.
Smith (31) is believed to be looking at taking the rest of the year off, after the Bledisloe Cup test in Dunedin on August 26. A sabbatical option was built into the New Zealand Rugby contract he signed earlier this year.
He said all would be confirmed in the next few days.
"At this stage I am just trying to nut things out on what I am doing. When I figure that out, I’ll let you know. But at this stage I just need to know what is working going forward.
"There is nothing in concrete yet. Just a few conversations have to be had."