We also started by first teaching them their own names letters which gave it more relevance. (toddler-activities-at-home.com)
After reviewing approximately 500 studies on the literacy skills that correlate with later achievement, it pointed to the importance of six abilities: knowing letters; being aware of the sounds within words; being able to rapidly name letters, digits, objects, and colors when they are presented; writing one's name; and remembering what sounds go with what patterns of letters. (prospect.org)