The point means Dortmund now trail league leaders Bayern Munich by 14 points while the Bavarians have a game in hand against Stuttgart on Wednesday.
That gap now looks insurmountable, especially if Dortmund play the way they did on Saturday, according to their coach.
"We had such high hopes, but then the team suddenly cramped up at a certain stage and we lost all the ease of our play," he said.
"I could only very rarely see the joy in this wonderful game. Our opponents showed it a lot more because they liked to make a physical game out of it."
Klopp says it was Augsburg's physical approach which disrupted his side's rhythm.
"Whenever we got into a flow, they would break it up with tactical fouls," he told Sky television.
"It didn't get any better, it just became wilder. Our opponents did it well.
"We can definitely play better than this, no doubt about it, but we've got to do that too."
Augsburg, who spent the last two seasons in the Bundesliga battling against the drop right down to the final days of the season, moved to within three points of the top six thanks to the draw, raising hopes of playing in Europe next season.