Badges played an awfully important part in medieval culture; they could signify a pilgrim on his way to a religious site, show devotion to a cause, even mark the bearer as an official of some extent. What I propose would be another way to incorporate heraldry into a uniform of sorts, but in a way that doesn't require all the 'flair' of a tabard, surcoat or having a crest painted on one's shield.
What I would promote would be a badge of a simple geometric shape such as a Star, Cross, Shield (what I am mostly hoping for) Circle, Square or the like that could be visually represented on the body, that could bear the same colors and patterns as what Kingdom/Guild/Clan/Duchy/Warband that the player would belong to that could potentially even be placed in the necklace slot for jewelry on one's person. Such a simple icon would help with unit recognition in the midst of combat or during patrols, while not blatantly exposing yourself by displaying a bright coat of arms on something so visible as a tabard or surcoat. And being able to loot these items from your opponent could at a glance even help to pass yourself off as if you might belong.
These items could likely be crafted via the Forging skill, or potentially created via the Authority Skill.
Please let me know what you think! I'd love to have these be put in.