Forrester introduced Experience-Based Differentiation (EBD) as the model for customer experience excellence. To find out how far firms are along the path to EBD, we asked 287 customer experience decision-makers about their firms' capabilities in the three key areas of EBD: 1) Obsess about customer needs; 2) reinforce brands with every interaction; and 3) treat customer experience as a competence, not a function. It turned out that most firms, especially larger firms, received poor ratings in our EBD self-test. Companies should use the self-test to chart their path toward EBD.