Before losing to New Zealand 10 days ago Wales won eight matches in a row, including an RBS Six Nations clean sweep, but that is in contrast to the Hansen era - when Davies was a key figure - when the squad suffered a 10 match losing streak.
"The majority of the squad have been in this situation before, but it's not what we've been used to coming off the Grand Slam," Davies said. "It is difficult but we can understand how we've come from a difficult situation before.
"It takes time but we've just got to make sure we're improving."
Although Wales nearly suffered their first ever defeat to Fiji last Friday night, Davies believes that the basics were right and what went wrong was "just details".
"There was enough possession, which was a great plus, but it's what we do with it that's important," Davies said. "Obviously South Africa this Saturday is another level and they had a great Tri-Nations.
"But the great thing is that by playing great opposition you can learn so much and it's a great challenge. There's one thing you're sure of with South Africa - that it will be physical but we've got to be smart enough to prepare for them.
"We ran them close a year ago, but this is this year and a totally different situation."