Students' perception of excessive difficulty in STEM degrees lowers their motivation and, therefore, affects their performance. According to prior research, the use of gamification techniques promote engagement, motivation, and fun when learning. Badges, which are a distinction that is given as a reward to students, are a well-known gamification tool. This contribution hypothesizes that the use of badges, both physical and virtual, improves student performance and reduces dropout rates. To verify that hypothesis, a case study involving 99 students enrolled in a Databases course of computer engineering degrees was conducted. The results show that the usage of badges improves student performance and reduces dropout rates. However, negligible differences were found between the use of different kind of badges.