Understanding the Motivations for Business Participation in Voluntary Web-Based Business Surveys

Table 1: Grouped Coding

Key Findings

Overall Results from Cleveland Fed and Richmond Fed Surveys

The three most cited reasons for participation in the surveys were helping the Fed understand the economy (23 percent), providing the Fed with accurate data (20 percent), and having the opportunity to be heard (19 percent).

When assessing the grouped reasons for participation, wanting to help the Fed was by far the most important reason for participation overall, followed by receiving a benefit (Figure 2). However, participation patterns varied between institutions, highlighting the distinct contextual factors influencing respondents to the Cleveland Fed and the Richmond Fed surveys. Differences in respondent motivations align with the different engagement strategies employed by each Bank, with the Richmond Fed's benefits-focused strategy and Cleveland Fed's relationship-building strategy each appearing to shape participant perceptions in distinctive ways. Studying the responses from the two Banks provides a more complete picture of the range of participant motivations.

Cleveland Fed-Specific Analysis

Cleveland Fed survey participants primarily reported wanting to help the Federal Reserve understand the economy and provide accurate data. Business-survey participants, especially from small to midsized firms, wanted to have a voice in monetary policy discussions. Recruitment methods also influenced motivations, highlighting relationships as a key element of the Cleveland Fed’s survey panel engagement.

Results by Firm Size

Firm size revealed different participation drivers. Midsized and large firms more frequently reported wanting to help the Fed (understand the economy, have accurate data, and so on) than small firms. Small and midsized firms, in comparison to large firms, more frequently cited receiving benefits as motivation, including more mentions of using the survey to reflect on their own firm’s performance. Small and midsized firms also more frequently reported being motivated by having their voices heard in monetary policy discussions than did large firms.

Results by Mode of Recruitment

Panelists in the Cleveland Fed’s survey are recruited through regional executives’ individual outreach meetings and cold letter campaigns. Panelists with existing relationships—those who were recruited by regional executives—more frequently cited wanting to help the Fed than did those without an existing relationship (Figure 4). Those recruited by cold letters more frequently expressed wanting to be heard and desired transparency about how the results are used.

Richmond Fed-Specific Analysis

Researchers at the Richmond Fed conducted a detailed segmentation analysis to understand how survey participation motivations vary based on two key factors: the method through which businesses were initially recruited and their duration as panel members. This analysis aimed to optimize communication strategies and enhance long-term engagement within different segments of their business panel.

Results by Mode of Recruitment

Across all recruitment methods, the desire to help the Federal Reserve was the most frequently cited motivation (Figure 5). Businesses without an existing relationship with the Richmond Fed more frequently cited the desire to help the Federal Reserve as their primary motivation than those with existing relationships. Additionally, businesses without an existing relationship more frequently valued the benefits offered to panel members and felt a sense of obligation to participate. In contrast, businesses with an existing relationship were more motivated by ensuring their voices were heard, while placing somewhat less emphasis on benefits.

Results by Panel Duration

The results were also split based on the panelists’ duration in the panel. The desire to help the Federal Reserve was a consistent motivation across all participants, regardless of how long they had been panelists. However, as shown in Figure 6, this motivation is particularly strong among the newest members of the panel (a tenure of three months or fewer). Longer-term panel members (seven months or more) more frequently reported valuing the benefits they receive, such as webinars and newsletters, having had more time to experience the survey panel benefits. Panel members with a tenure of four to six months most frequently valued the opportunity to be heard.

Adjustments Informed by Findings

Cleveland Fed Adjustments

Based on findings from the Cleveland Fed’s survey, the regional team at the Bank expanded its engagement strategies beyond the previous recruitment focus. Access to business survey results or other benefits was an important motivator for many firms to participate across all respondents. This insight motivated the regional team to release SORCE indexes derived from the survey data, host a webinar to introduce the indexes, and to increase the publication frequency of District Data Brief, a series of short articles analyzing survey results and other trends in the region. In an effort to increase transparency of how data are used, the group conducting the survey participated in developing a multimedia story about data-collection processes and data use leading up to FOMC meetings.

The Cleveland Fed’s regional team is developing additional strategies to reach respondents and the public with survey results. Asking businesses about their motivations is an initial step to help balance panelists’ efforts with the appropriate benefits while enabling evidence-based retention strategies rather than relying on trial-and-error approaches. This feedback strengthens institutional relationships, enhances transparency, and ensures sustained collection of high-quality data essential for helping inform monetary policy.

Richmond Fed Adjustments

Based on findings from the Richmond Fed’s survey, the regional team implemented a communication strategy tailored to the duration of businesses' membership on its panel. New businesses began receiving an email after their first month on the panel that explains how their information is used, emphasizes the Bank's respect and appreciation for their participation, and provides details on how their responses contribute to monetary policy discussions. Longer-term panel members, those with seven months or more on the panel, also receive periodic reminders about accessing information and additional analyses from the survey to maintain their engagement and inform them of the ongoing value of their participation.

The Richmond Fed also updated its recruitment materials to reflect the different ways it connects with businesses, whether through an existing relationship or forging a new one. With the new understanding that businesses with existing relationships want the opportunity to be heard, all recruitment materials were updated to highlight this motivation. In outreach to businesses without existing relationships, recruitment materials highlight how their participation is an opportunity to tell policymakers what is happening with business conditions at the local level and in real time, which may not always be visible in national data or only are available with a delay.

Multiple businesses cited receiving a benefit as a significant motivator behind their participation. Many businesses value the information provided because it allows them to benchmark their performance against that of other businesses in the region. This benefit is particularly important for longer-serving panelists. This information has motivated the Richmond Fed’s regional team to develop new data products that businesses may find valuable, with the aim of encouraging continued participation.

Building Sustainable Survey Relationships

This analysis demonstrates that businesses' motives to participate in Federal Reserve Bank surveys largely align with social exchange theory frameworks that focus on individuals. Respondents' participation appears driven by a rational assessment of benefits and costs, where the value derived from engagement—whether through a newsletter, meetings, or contribution to policy—exceeded the time and effort required. These findings reaffirm that balanced relationships are fundamental to sustained engagement in the Fed's survey panels. Hearing directly from businesses about these motivations helps researchers at both the Cleveland Fed and the Richmond Fed design strategies to foster long-term participation.

This research suggests that the engagement approach, rather than the communication content, influences participation by building on three facets:

• Shared interests: Businesses and the Fed both want a healthy economy. As one participant noted, "It is important that the Fed has good data to make good decisions so they can improve business conditions."
• Credibility: Businesses value the opportunity to share insights with the Fed, which can use the results to inform monetary policy. As another respondent noted, "My participation gives a voice to small businesses in policymaking conversations."
• Respect: Business panelists need to know if their survey responses are taken seriously and used transparently. When Reserve Banks are transparent in how they use information that they gather, respondents see that their efforts are valued.

We hope that this foundational research will help develop strategies to build and maintain relationships with businesses in the Cleveland Fed and Richmond Fed Districts and beyond, encouraging sustained survey participation.