Seeing a mighty hero hacked to pieces by a despicable foe will certainly have an effect upon a unit's fighting spirit. If a character fighting in a challenge kills their opponent and causes more unsaved wounds than their opponent has Wounds remaining, then for each excess wound you may claim a bonus of +1 combat result point, up to a maximum of +5.
Note that this is an exception to the norm. Usually, only the number of Wounds lost is counted for the purposes of the combat result, not the number of unsaved wounds caused.