The tourists were narrowly beaten 28-27 on Saturday as the All Blacks took an unassailable 2-0 lead in the three-Test series.
"It wasn't good enough," Wood told Sky Sports News. "It's as simple as that. We went to sleep and they were just too good for the 10-15 minutes at the start of the second half.
"I'm pretty despondent. We came here to win, we had them on the rack. We talk about lessons but it's not good enough."
England return to action on Tuesday when they play Crusaders in Christchurch before next weekend's final Test in Hamilton.