The Premier League champions lost 1-0 to Borussia Dortmund on Tuesday, a result that ensured they would finish bottom of Group D, even missing out on a Europa League spot.
Their tally of three points from six games is the lowest ever by any English side in the Champions League - eclipsing Blackburn's haul of four in 1995/96.
They are also the first English team to go through an entire group stage campaign without picking up a victory.
Lescott is all too aware that City's displays in Europe have not been up to the required standard but is confident they can improve should they qualify for next year's competition.
"It hasn't been of a Man City standard this season so we are disappointed all round really," he told Sky Sports.
"We've adapted ourselves well at times but throughout the tournament we haven't consistently done well and it's not good enough.
"We need to continue to progress. Last year we made a good account of ourselves and were unfortunate not to go through, but this year it wasn't to be and next year should we qualify I'm sure we will be equipped to do better."
Roberto Mancini's men have little time to feel sorry for themselves as Manchester United lie in wait in a huge Premier League encounter at the Etihad Stadium on Sunday.
Lescott has dismissed fears City's European woes will hinder their league form, insisting they will be ready for the visit of their city rivals.
"We haven't done that great in the Champions League so far this season but it hasn't affected our Premier League form so there is no reason to suggest it should this weekend," added the former Everton and Wolves defender.
"We know it's a derby, it's a massive game and the chance to stay unbeaten and go top of the league."
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