Which term refers to evidence of customer demand and product adoption?

The term that refers to evidence of customer demand and product adoption is traction. Traction signifies that a startup is gaining a foothold in the market and indicates that customers are using the product or service, which often translates to measurable growth in sales, user numbers, or engagement metrics. This evidence is crucial for startups as it demonstrates to investors and stakeholders that the business idea has potential viability and is resonating with the target audience. Traction can also act as a validation of the business model and strategy, indicating that the product is solving a problem and meeting customer needs effectively.

Engagement, while related, focuses more on how often and how deeply customers interact with the product rather than on the broader, more concrete indicators of adoption and demand. Market fit refers to the alignment between a product and the needs of its target audience, but it does not specifically measure customer demand. Retention deals with how well a company can keep its customers over time, which is important but does not directly indicate initial adoption or demand for the product.