The Reds' boss saw his side's chances of a top-four finish all but come to an end when they lost at home to West Brom on Monday, before suffering a devastating Europa League defeat to Zenit, leaving them with only the slimmest chance of claiming silverware at the end of the season.
And Rodgers believes that the Merseyside club must recruit strong personalities in order to bolster their hopes of success next season.
|4/5||Liverpool are 4/5 with BetVictor to finish in the Premier League's top six
"That is the reality of it - we haven't been good enough. In order for us to be up there consistently we need to improve in terms of our mentality.
"Technically we are very capable, tactically we have not been found wanting, the condition and intensity of their work is high so that only leaves you one thing - mentality. That is the area which needs to improve and to do that we need character." The Liverpool boss highlighted Jamie Carragher, who is set to retire at the end of the season, as an example of what his squad needs most.
"Look at Jamie Carragher, he is our best defender; he is 35 but we are losing that character," he added. "That has to be replaced. I also think there are other areas of the team that need improving.
"You have to establish character, they have to be players, that is the key thing. They need that hunger to want to succeed."