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Wildcats conceded the first goal within the opening five minutes and struggled to climb back from that point onwards.
After the full-time buzzer, Nell revealed the final score line was a result of several weeks of poor performances.
"Since Christmas we haven't been good enough and we've been due a beating like that. We just need to get back to work, and that's the only thing we can do now, hard work," Nell began.
"Every team in this league has a bad patch. Peterborough just lost four in a row and I don't think we've really had that yet, but we're in it now.
"We've been lucky that Stevie Lyle has been basically standing on his head, and he was great again tonight. They (Phoenix) just scored dirty, greasy goals that we need to start doing.
"I'd say we had 15 grade A chances tonight and I'm the biggest culprit, I have to start scoring. As top guys we have to carry our team like their top guys did tonight," Nell added.
The head coach put the loss down to recent poor form, and maintained his side now have to work hard in order to turn things around.
"It's frustrating, but we did deserve that tonight. Maybe not from the way we played tonight, but how we have played in the last three weeks - that's the frustration," said Nell.
"We all need to just bring it, work hard and have fun. Before Christmas we were enjoying coming to the rink and when you work hard it's fun. You win, and you win as a team. We just need to get back on the horse.
"We've deserved that beating for three weeks now and we've had it, but now we need to recover. We haven't been beaten like that for a very long time, but it happens," Nell added.
Nell reserved some praise for the hosts, who were well worth their five goal plunder.
"They were very good tonight - the first five minutes of the game they came out flying and got their goal, and then we started pulling back.
"We had an awful lot of chances tonight but we've got to put them away, especially away from home," said Nell.
The Wildcats have chance to make immediate amends, as their next league game sees them face Manchester Phoenix again next weekend in Swindon. A game Nell believes is now huge.
"It's a massive, massive game. We need to start feeling good on the ice again. It's all of us now who need to put it in, from me to Carlo to Floyd Taylor, all of us need to pull together," said the Cats' head coach.
"We've got 20 games left and we've had a great year so far and we're gonna be fine, but we have to put the work in."
In terms of preparation going forward, Nell suggested his side would have lots to digest in the week ahead, identifying where they went wrong and the seek to remedy.
"I watched the video from last night's game (Hull Pirates) on the way up here, and we'll do some video stuff also next week. We'll dissect where we went wrong over the next couple of days and just get back on the horse.
"I believe in karma. Six weeks ago we were getting the rub of the green and we deserved it through hard work. Tonight we didn't get the rub of the green, we got beat heavily and we deserved it.
"Sometimes you need a reality check because sometimes we may get ahead of our station. Now we're back down in a bad bit again, but we'll bounce back. We're a good bunch and we've had a tough few weeks but it will build some character," Nell added.
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