A superb 72nd-minute strike from David Nugent secured the win for the Foxes after Bakary Sako had cancelled out Anthony Knockaert opener.
Saunders said: "I thought we played well but missed our chances. We had at least 10 clear cut chances and then got done twice on the counter attack.
"For the first goal we backed off and let the lad get into the six-yard box. It was not the best defending but when you lose as many games as we have done you lose belief.
"But we were playing well in the second half after our equaliser, and I felt it was only a matter of time before we scored. But I think we became over confident and we should have stopped Nugent right where he picked up the ball on the half way line.
"But it was a great finish.We've had good chances but missed them all.
"The club has been struggling for three years and have lost 16 games this season. That's why I have been brought in - to turn it round.
"Things are improving and we will be fine I think. If we play like this we will beat any team."
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