Backlinks still count but the way you should build them has changed. Don't build thousands of spammy links, build few manual links e.g. niche guest posts, niche blog commenting, niche forum posting and for local citations.
Also note don't hammer your anchor text with exact match, put long tails in and use LSI content around the links. I think Google is moving away from putting so much weight on anchor text and more weight on the pages content the link comes from. Google realizes that people wouldn't usually link with exact anchors, but rather anchors such as "here" and "brand name" and "website name".