After being comfortably beaten by Huddersfield Town just days earlier, the Canaries responded with a phenomenal performance in front of their own fans.
Goals from Nelson Oliveira, Wes Hoolahan, Russell Martin and a brace from Alex Pritchard saw Norwich 5-0 up within the opening 35 minutes at Carrow Road.
Yann Kermorgant pulled one back for the shell shocked Royals in the 39th minute, only for Hoolahan to tap in for 6-1 and Cameron Jerome to add a seventh at the end of the game.
"We've had a couple of defeats in a row before this season and we've succeeded in bouncing back," Jaap Stam said.
"The players have got the mentality to want to do that and I'm confident in the team that they'll want to do well towards the end of the season.
"Unfortunately days like this can happen but we still have five very important games to go to secure that top-six spot.
"There's not going to be a lot of difference (on the training ground) in what we normally do. We'll speak about what's happened and we'll show some clips and talk about what we need to improve and be better at.
"But sometimes it's not tactical, it's about feeling from players. Because you're working with human beings, you can't always bring the same standards week in, week out.
"We're a team of young players that need to develop, but also some older ones who sometimes struggle to play to the standards they did before.
"If we're not playing up to standard, perhaps we need to make it a bit more difficult for the opposition."