"[Monday] was very frustrating for everybody and maybe it wasn't the best performance from us, but we have this FA Cup tie on Sunday which gives us a chance to play better and win the game," said Babel.
"We felt we would go on to win the game after Stevie scored a nice goal but it was disappointing to concede such a late goal.
"Everybody was disappointed in the dressing room after the game and it was very quiet. Sammy Lee spoke to us about the positive things and the fact we can put things right on Sunday, and he got our confidence up. Sammy is very important for us and he always lifts everybody.
"This will be a different game on Sunday and hopefully I will get the chance to play and help us win the game.
"We can talk a little bit about revenge maybe and we want to improve our performance and get a better result.
"I enjoy playing in the derby. I knew about the Merseyside derby when I was in Holland but when you talk about the level of both teams I think we are much better than them.
"Liverpool also has a big rivalry with Manchester United but we know how special this game is for the supporters.
"Steven Gerrard and Jamie Carragher also make us aware of just how important this match is and we are ready for Sunday."