Wanderers took another step towards an immediate return to the Championship with a 3-0 victory in the Black Country derby thanks to two Nouha Dicko goals and another from Bakary Sako.
Smith, who saw his side beaten for the fourth successive time, said: "It was a very harsh scoreline because we were in the game for long periods. We came out in the second half and the unfortunate goal we then conceded knocked the stuffing out of us for a while.
"They were more clinical than us but it was very harsh on the players and I'm pleased they did not just accept 3-0 and kept going. I thought we played some very good stuff, and we are not going to play against that quality every week.
"People will look at the 3-0 scoreline, but we were in the game throughout. A lot of teams 3-0 down would have thrown in the towel but the players kept going and we had chances after that.
"We shall take a lot of positives from the game. We have had more chances in the game but they were more clinical."