Despite success in February's League Cup final, Kenny Dalglish's side have taken just 15 points from a possible 51, a run of 17 games which includes 10 defeats.
Now, with his side sat in eighth in the table, Gerrard has told his team-mates to accept criticism for their displays this season and bounce back next year.
"We need to dust ourselves down and we need to respond to the challenge next year," he told reporters.
"We need to come back. Football is about highs and lows, it was certainly a low [on Saturday].
"We've been fantastic in the cup competitions this year and the players deserve a lot of credit for that.
"We haven't been good enough in the league this year and we deserve criticism and we need to take criticism like men.
"We need to do better. We're Liverpool Football Club; we're not seventh or eighth in the league. We're better than that."
Goals from Ramires and Didier Drogba ensured Chelsea recorded their fourth FA Cup final victory in six years, although Andy Carroll's second-half strike gave the Reds hope of a late comeback.
And Gerrard believes Liverpool's showing in the second 45 warranted extra-time, something they nearly got, only for Carroll's late header to be judged not to have crossed the line.
"I think on our second half performance we certainly deserved to take Chelsea to extra time," the midfielder told his club's official website.
"But I don't think we did enough over the 90 minutes to deserve to win the game.
"I think, given the pressure we put them under second half, we're a bit disappointed we didn't get extra time out of it.
"That's the frustration. Looking back, we never got going until 30 minutes into the game and I think we got even better once Andy came on and we finished the game a lot stronger than Chelsea.
"That's why I believe we just did enough to get a draw out of the game. I wouldn't say we did enough to win it."
While Gerrard believes Carroll's effort should have stood, he accepts the difficulties faced by the officials when making such decisions.
"It's difficult for the officials," added the 31-year-old.
"Obviously from a biased point of view, we've got an argument with the computer image but the officials have got an impossible task when it's so close and until technology comes in, you can't really put a big argument forward with decisions like that.
"It's one of those things: Chelsea got a bit of luck against Tottenham in the semi [when they had a goal awarded despite the ball appearing not to cross the line].
"They got a bit of luck again yesterday. Maybe this was their year."