The scoreline of 20-15 in favour of the World Champions only told half the story, as the English were the better team throughout, but will rue the failure to convert try-scoring opportunities against the All Blacks.
Gloucester Rugby trio Ben Morgan, Jonny May and the departing Freddie Burns put in massive shifts and the England squad on the whole, without their Aviva Premiership finalists, deserved more from a brave performance in Auckland.
Burns kicked four penalties out of four, whilst Morgan and May made plenty of sparkling breaks against their illustrious opponents, and all looked well at home in the top class test arena.
England started the brighter in Auckland, and a sharp break from Chris Robshaw saw Ma'a Nonu cynically pull back James Haskell in support, surely a yellow was deserved, but Burns confidently chipped over from the tee.
That was then cancelled out as the All Blacks' pivot Aaron Cruden kicked a three points of his own with England offside from a neat Ben Smith break.
Shortly after, Manu Tuilagi had to be alert to cover as Smith chipped through for Dagg as the game was played at a blistering pace and England's combinations began to click.
Burns then notched himself a pair of penalties from impressive range to put the tourists into a 3-9 lead, as the All Blacks struggled to cope with England's tempo of play.
Cruden then reduced the deficit to 6-9 after Robshaw infringed at the breakdown and the sparring match continued. The outside half from Waikato then repeated the trick to level the scores at nine apiece going into the break.
With the All Blacks looking rusty on their first outing of 2014, England sensed a real opportunity and the second half was a real tussle, littered with handling errors and picky decision making which stifled any continuity.
With England under pressure near their own try line after Jerome Kaino knocked on with a score imminent, Ben Morgan made a stunning break off the base to make 30m, which gave Kyle Eastmond the chance to scuttle brilliantly past Nonu but the Bath Rugby man's pass found no one with a score looking certain.
On the hour mark, Burns and May combined and the winger chipped ahead to blitz away and capitalise on Beauden Barrett's slip, the All Blacks cynically killed the ball and didn't realise the England wing, and Burns knocked over his fourth penalty although no yellow card was forthcoming for the hosts.
Cruden, then almost immediately responded with a penalty of his own to level the scores at twelve apiece, and then the Kiwis upped the tempo to earn another chance from the tee, which saw Marland Yarde sinbinned, and Cruden obliged.
With Burns withdrawn from the action, Danny Cipriani's sharp break was rewarded with a penalty and the returning pivot confidently levelled the scores.
The All Blacks then forced Joe Marler to hold on in English territory, and Cruden caught England napping for a quick tap. As England scrambled, Wyatt Crockett's short range effort was just short, but from the next scrum, the ball was neatly worked to Conrad Smith who dived over in the corner.
Although Cruden failed to convert, there was only seconds on the clock and the All Blacks saw out time to scrape the win however, with the cavalry arriving for next week's test in Dunedin, it would be the English camp feeling slightly happier.
Gloucester have been in good form in recent weeks, but Backs Coach Tim Taylor knows that the Cherry and Whites will have to be at their best on Thursday evening (kick off 7:45pm) against a Stade Rochelais side flying high this season.
Speaking to GRTV after the bonus point win over Bristol, back row Lewis Ludlow revealed that despite a tricky first half, Gloucester backed their skills to come through, a faith that was evident in a strong second half showing.
Willi Heinz scored Gloucester's second try as the Cherry and Whites overturned a disappointing first 40 minutes and 0-6 half time deficit, to earn a 26-18 Aviva Premiership victory over Bristol Rugby on Saturday.
It's the first Gloucester-Bristol derby at Kingsholm in over eight years this Saturday (kick off 4:30pm) and, previewing the game with the local media this week, Defence Coach Jonny Bell stressed that, with both teams in the bottom half of the table, they both need the points.
Speaking to the local media this week, Gloucester front rower John Afoa knows the challenge ahead this week against Bristol, and calls on the Cherry and Whites to make the most of home advantage as a determined squad look to bounce back from a narrow loss to Saracens.
Tom Savage speaks to GRTV and the local media as Gloucester went down by 24-20 at Saracens on Sunday afternoon. The second row was disappointed with the result, despite a strong showing from the hosts.
After taking 11 points from their last three games in the Aviva Premiership, including bonus point wins against Wasps and Bristol, Gloucester will be looking to continue their good form when they welcome La Rochelle to Kingsholm.
Having named an unchanged starting XV for the past three Aviva Premiership games, Gloucester Rugby ring the changes and retain only five players for Thursday's visit of Stade Rochelais in the European Rugby Challenge Cup (kick off 7:45pm).