The majority of businesses believe social networking can improve relationships with customers, a new survey has found.

Research by Russell Herder and Ethos Business Law revealed that 81 per cent of marketing, management and human resources executives in the US think that websites such as Twitter and Facebook can strengthen associations with clients.

The same figure said that brand reputation can be enhanced if social networks are used effectively, while 69 per cent cited the websites as being a valuable recruitment tool.

Facebook was found to be the most popular site among 80 per cent of respondents, followed by Twitter with 66 per cent and YouTube with 65 per cent.

Despite the benefits of social media, the study also showed that bosses are concerned about the drawbacks of its usage, with over half (51 per cent) worried that use of it could have a negative affect on employee productivity.

Co-founder of Twitter Biz Stone recently told Venture Beat that the micro blogging site is introducing analytics services for firms that use the website for business purposes.

He explained that the offering will be part of a range of new features that are being implemented in order to enable Twitter to begin generating revenue.