This paper presents an approach for analyzing the performance of dropout compensation strategies for linear servo control systems operating over communication channels with losses. A loss of communication causes the normal control action to be replaced by an appropriately designed dropout compensation action. A linear matrix inequality based approach is given for examining and/or performance of wireless feedback systems using dropout compensation where we assume a two-state Markov model for the communication network. To illustrate the analysis method, we introduce two specific data dropout compensation schemes: zero order hold and estimation. These two schemes are compared in simulation and experiment to validate the effectiveness of the performance analysis.