Organizations make increasingly use of social media in order to compete for customer awareness and improve the quality of their goods and services. Multiple techniques of social media analysis are already in use. Nevertheless, theoretical underpinnings and a sound research agenda are still unavailable in this field at the present time. In order to contribute to setting up such an agenda, we introduce digital social signal processing (DSSP) as a new research stream in IS that requires multi-facetted investigations. Our DSSP concept is founded upon a set of four sequential activities: sensing digital social signals that are emitted by individuals on social media; decoding online data of social media in order to reconstruct digital social signals; matching the signals with consumers’ life events; and configuring individualized goods and service offerings tailored to the individual needs of customers. We further contribute to tying loose ends of different research areas together, in order to frame DSSP as a field for further investigation. We conclude with developing a research agenda.