The Whites have operated with the smallest playing staff in the Premier League this season and Davies believes that has contributed to a campaign which has tailed off after they had been in a strong position, in seventh, at the end of November.
"If you look at the size of our squad and the money which has been spent compared to other teams it is not big," said the 32-year-old.
"It has been a stop-start season. We've won a few then lost a few and not really managed to put any consistency together.
"It is something we want to build on. [We need to] bring in one or two new faces to help push us for our places because it has pretty much been the same lads out there week in, week out.
"Hopefully we can bring in one or two quality players to help us out.
"We can improve next year and have a top-10 finish and we want to be knocking on the door of a European place again."
Even after Saturday's goalless draw with local rivals Wigan, Megson will not yet accept Bolton are safe from relegation even though they are 12th on 39 points, eight points above the drop zone with just three matches remaining.
However, Davies is not so pessimistic and when asked whether they were safe he said: "You'd probably think so.
"We'd like to have got to 40 points but we have had two tough games (against Aston Villa and Wigan).
"But we picked up a point against a good side in Villa last week and another at Wigan on Saturday."
Davies accepts a finish in the top half of the table is now beyond them, with Tottenham currently occupying 10th on 47 points.
But 11th-placed Wigan are only three points ahead of Wanderers and the captain has his eyes on overtaking them.
"The top 10 is looking out of reach, unfortunately we have slipped away from that," he added.
"But we want to finish as high as we can so we are probably targeting 11th.
"Before the Portsmouth game (on April 18) we said we wanted to finish the season undefeated but we lost that one and we said we don't expect to lose any more.
"We have two home games coming up (against strugglers Sunderland and Hull) and we'd like to win both of them."
Goalkeeper Jussi Jaaskelainen, whose performance ensured they left Wigan with a point after a first clean sheet in eight matches, does not believe much is required to make the transition to a consistent top-10 side.
"It is just the little things we need to do better to get into the top half," he told Wanderers World.
"It would be nice now to pick up two wins (against Sunderland and Hull) but it is going to be tough because they are fighting relegation.
"We are not mathematically safe but we'll be looking for positive results."