Adding and using Badges - in a nutshell 

To display badges in your template, you will need one Badges-Section and one Badges Placeholder-Block.
The Badges-Section contains all the information, general settings for your badges, and all the individual badges.
The Placeholder-Block indicates where in your template you would like the badges to appear.
Add the name of the Badges Section to your Placeholder Block, and the Placeholder Block will display the badges from the Badges Section.
More about adding badges to your template

Badge-Sections contain blocks, with each block representing one badge.
You may add as many badges to your section as needed.

Each badge block includes two settings: “Offer” and “Lesson.”
The Offer setting is required, and the badge will only be granted to students who “own” the offer.
In your Kajabi account, create a ghost offer and use Kajabi’s automation to grant it at the end of a lesson.
The Lesson setting is optional and may be left blank. If you add a lesson's Title or ID, the “Badge-Granted Popup” will appear as soon as the lesson’s video playback is completed, and the sound effect will play.
If you leave the Lesson setting blank, the “Badge-Granted Popup” will only appear after the next lesson page has loaded, and the audio effect will not play.

Whether you choose to use levels or badges, we recommend not creating a badged section from scratch. Instead, choose a pre-made section that closely matches your needs in terms of the number of columns, badge background (box, circle, etc.), and icon type/style. Then, simply replace the badge images or icons with your own by editing and duplicating the existing badge blocks.
More about using and granting badges