The Sounders were beaten 3-2 by Mexican outfit Monterrey on Wednesday to slump to their fourth defeat in four matches of the competition to end any hope of progressing to the next phase.
But Schmid wants to return to the Champions League next season bigger and better for the experience.
"We want to be back next year in CONCACAF and we will do much better," he said after the loss.
"We had a bad 10 minutes today. But certainly we are still a young team in the second year of existence as a franchise. We learn every time we play together."